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Why does Ebay auctions say the current bid is lower than the latest actual bid?

Are you bidding if so then YOUR bid is lower than the actual bid. When you bid let say it starts at .99¢ and you want it and its worth like $25 max to you. YOu can put in $25 as your maximum bid you wont have to pay that much unless some bids you up to that much. Let say another person is bidding on the same item but puts like his max bid is $16.00 then you pay like $16.51 i think is the way it goes up in .50¢ increments up to $25 then $1 bids then over $100 goes up like $2.50 each bid and so on.
Thanks

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