Originally Posted by Laszlo
The Buy It Now price is available until the auction price has exceeded a price threshold or until the reserve price has been met.[/b]
Exactly, you are making the case AGAINST your argument, this was a NO RESERVE auction. Once the first bid goes in, the BIN price disappears.
Just acknowledge that you are wrong and move on. The OP did everything correct and is getting the shaft from an unethical dealer.
The dealers error was by not setting a reserve. But, this was a risk that they took because NO RESERVE auctions tend to get more attention. So, they tried to use the "no reserve" to their advantage but got beat by an honest guy.