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DavidPoints 2 and 5 are exactly right. I also agree that he should just sell the damn thing as a reprint for $5 and get over it.
After reading through the seller's website, it is apparent that he is 'not all there.' Your points are perfectly logical, which is why they won't work on him. I tend to wonder if he is mentally impaired.
It is more than unlikely that the bids are legitimate. A real Wagner in that condition would likely not sell that high if was auctioned by MastroNet.