Sealed-bid auctions are incredibly common across markets [1]. Real estate. Corporate mergers.
Note, too, that an English auction is revenue equivalent to a second-price sealed-bid auction [2], and here we had a first-price sealed-bid auction with two bidders.
There may be valid reasons to challenge this auction. Sealed bids is absolutely, definitively not one.
[1] https://en.m.wikipedia.org/wiki/First-price_sealed-bid_aucti...
[2] https://www.sfu.ca/~idudnyk/Auctions_Part2_Revenue_Equivalen...