Automatic Bid in Godaddy Auctions!

I was trying to buy few PBN domains from godaddy auctions and today was my first day. I kept two domains in my watchlist and waited for the last minute. But when ever I submit a new bid, an another automatic bid is placed $5 above the current bid. This happens in like within 1 second of my bid. Is this natural? Who would be behind this? I don't think I could win an auction if this is how it works! Please help.

Of course it's going to be normal. If you want to compete; get some sniping software and fight fire with fire.

Assuming that you are correct there's 2 possibilities as to what could be happening here:

1. The owner is bidding against you hoping to increase the price you pay; this is known as "shill bidding".
2. Someone else with GoDaddy auction "sniping" software wanted the same thing you did.

Godaddy auctions work like Ebay so you enter your maximum bid and it bids up to that amount. So you could bid $100 but if no-one else bids, you only pay $12

Others' highest bids wont be shown, they'll increase incrementally as yours goes higher

Its called proxy bid. Next time when you are bidding on a domain, you just enter the maximum amount you are willing to spend on that domain. Then the system will bid automatically on your behalf - increasing the amount.