I'm not sure what you are questioning here.. :)  
The other bidder put in a bid of $127 or so, so 
now you are still the high bidder at one 
increment above the other guy's high bid.  
That's how it's always worked.  

The high bid would kinda mean nothing if the 
price always stayed at the minimum bid.. ;)  If 
someone bids $249, you will still be the high 
bidder and will have to pay $250 if you win.