Why do eBay sellers use hysterically high pricing?

The above is a screen shot of an ongoing auction for an A5 Aqua Malden, taken today. The price is almost £1000 pounds. Why does this happen? Do people really expect to get that much for a binder which retails for between £73 to £105?

This happens when an item is out of stock and an auction is ongoing. The seller, rather than cancel the auction and have to pay relisting fees when the item comes back into stock, puts the price at a sum they are sure no one will pay.

People often stumble upon this pricing when they search for items that have recently been discontinued and are hard to find. This means bulk-sellers also have difficulty finding stock for auctions they have had going for months (you will see that this seller has already sold 15 A5 Aqua Maldens).

And below, an A5 Malden posted by the same seller one month later:

And another one, also by all-pens. Again, it is the last one of a large shipment. They are out of stock but showing one remaining – this means the listing is kept active while they are awaiting stock to avoid relisting fees.