Thanks for the clear explaination @mikepm74. I've been scratching my head about why this is an important issue, but I couldn't quite define it on my own. Comparing it to upvotes and bidbots is illuminating -- of which, I had thought to myself something like the following:

• Expanding on your example above;
  • Person A bids $1, Person B bids $1.50, Person C bids $2.50 for a total of $5.
  • Everyone is bidding for a slice of a $10 vote, and they're really excited because it looks like they're going to profit.
  • Person D comes in at the last second, and bids $95.
    ** Person D gets 95% of the reward -- $9.50, and everyone else splits the $0.50.
  • It's not the greatest example because upvotes don't COST money, while bid-bost DO -- but I think it's in the same line of thinking?