Personally, I wouldn't do anything about it. Most of the time guys don't even message the seller on stuff like that.
The guy knew he wasn't able to pay. Maybe he had a fender-bender and now has to use his money for repairs. Maybe a buyer didn't complete a transaction and now he needs that money to pay the bills. There are so many scenarios and none of them provide me with any motivation to ban the buyer from bidding.
Heck, I think this whole situation shines positively on the buyer. Instead of taking the chance of winning it and wasting your time and money as a non-paying buyer, he protected you from that inconvenience by alerting you before the auction ended. Banning him would just limit your exposure to legitimate bidders.
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