Following-up, here is what their customer service sent in response to my complaint:

"Here is an update to your customer service request:

"I am sorry for the inconvenience, Please read our Policy page, it
does state clearly we have the right to cancel an auction for this
reason. We do not have the unit and we refunded you in full." "

I didn't realize that after you have an auction, and declare winners, that you could choose not to provide the goods or services, and call it "canceling the auction". I did not realize that finding out if they have the goods or services is something they could wait to ascertain until after the auction.

I agree that some of the auctions seem fishy. There seemed to be a lot of people bidding in the middle of the night on New Year's Eve (when I had to work). I doubt they ever actually sell anything for a dollar.

I don't want to make this a sounding board for a private crusade. I am aware that this board is full of technically (and generally) saavy people who might utilize such a service, and I want to spare everyone the angst.