It could also mean that the seller wanted at least $500 for it, so got a mate (w***e) to bid in small increments to up the bid to $500. It doesn't help that the seller can see (for example, not saying this happened here) that e***f put in an opening bid, then added another bid in the history. That's a green light for the seller to get some shill bidding going on.
The thing with ebay is, that you have to expect that the item will sit near its starting price right up till the last few hours before it ends.
If its is bid up alot before then, then the bidders are either stupid (new ebay bidders make this mistake) and must have it and bid early, or something dodgy is going on.
If you want to win something cheaply, you try not to bid until the last minutes, otherwise your just driving the price up in the days prior and end up paying more. And if your a seller, start the item off near what you want for it.