Last minute bids higher than yours suck
That really does stink, as much as I hate ebay, my philosophy on ebay and money is......never put out more then you are possibly willing to loose. Make sure you research the seller the best you can (pos / neg) and rating number over atleast 100, or more.
Report that to Ebay Stat !!
If you payed via Paypal, Ebay will work with you to try and contact the seller..they give the a-hole a week to respond and resolve the issue and if they can't Ebay will refund your entire purchase plus shipping back into your Paypal Account.