I’m very doubtful that this is some sort of display glitch. I’d also be surprised if eBay does anything about this problem. This bug/exploit really only makes it difficult for great deals to fall to average eBay buyers. The amount of work required to build and update a software program to take advantage of this weakness would only be done by higher volume buyers looking for great deals on certain items that could be eventually resold. I wouldn't be surprised if eBay is very aware of this and is OK with allowing it to continue because it will just mean more auctions for them.
eBay has an open application programming interface (API) that allows developers to automate eBay functions through standard software calls. The functionality through the expected use of these API’s are very deep and could be used to create a great custom program that could really help with advanced searches and auction monitoring. eBay is very open with their searching and selling API functions. eBay is more restrictive on who they allow to use the API bidding/purchasing functions.
Although there is no API functionality to programmatically retract eBay bids the system is not safe from creative programmers. Because eBay applications exist for devices such as smartphones and tablets, the functionality of those applications can be intercepted, modified and automated by savvy programmers. I’m guessing any good “hacker” could manipulate the eBay application to allow a bid, data capture of bid amounts and bid retraction to all happen in under a second.
The only real solution to this problem will be for eBay to eliminate the bid retraction process from their website, applications and API, forcing people to place a phone call to eBay support to retract a bid.
I don’t see eBay taking this step because it would too expensive to implement as they’d have to hire more people to handle the increased support load.