I've had bids retracted stating the wrong amount. According to eBay they must immediately re-enter the correct amount but haven't.

Does anyone know why this policy isn't enforced or am I misreading the section?

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Have you reported the members for "invalid bid retraction"? If not then nothing will be done (not that much is done anyway).

 

Many of us believe you're better off with a bid retraction than an unwilling "winner" who has the power to leave you bad feedback.