If you bid before the last few seconds Red you are just pushing the price up.
Your max bid is £10 and you are winning with a bid of £5 with 1 day to go.
a) I bid £7, then £9 and then £11 with one day to go. You receive the email to say you have been outbid and now have 24 hours to come back and increase your bid.
Then I get the email to say i have been outbid and there is still time for me to reconsider.
b) I wait till there is 5 seconds left you are still winning with your £5 bid, i place a bid for £25 and win the item for £11. You dont see the email until after the item has finished.
If everyone actually entered there highest bid it wouldnt matter but in reality people go back and up their max bids to win back items they have been outbid on.
Hope that helps make sense of it?
But aren't you using the auto-bid thingy in that scenario, otherwise how could you bid £25 and win it for £11?
If you actually put in your actual maximum bid then there's no benefit.
Most people actually decide to bid "a bit" higher so this works better.
I wonder how often it actually helps anyway, sniping is only going to be needed anyway if the item you're after is a particularly good bargain or particularly popular - most things on ebay probably don't have a huge amount of people after them to start with.