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You can do the same thing on ebay.
if your friend bids to make the price higher, that doesn't really do anything, because people wont over-pay for the item if it goes too high. Plus they actually have to have that amount of coins in their Inventory to do it, if they have a highest bid and the auction finishes, the item goes to the next highest bidder.
Second thing is, you're better off simply using a fixed price to sell it, than trying to abuse it.
Third thing, I was supposed to make a fee for canceling a listing if the current price is above a certain amount to stop things like this, but I forgot so thanks for the reminder haha.