Are you allowed to withdraw your bid in an auction? Or is that considered a fake offer/fake bid and is reportable?

As long as the auctioneer is fine with that, then no problem else its still considered as "Bidding without any intention to buy". Also it depends at what time you withdraw your bid, if its at the end where only few minutes or hours are left, then the situation can get more worse. On such situation its depends on the previous bidder who had the highest c.o before you post your offer. Worse thing that could happen is : for some reason the previous bidder is not interested in the auction anymore and doesn't want to participate after what happened. This would just ruin the entire auction and might lead to frustration to the auctioneer thereby wasting everyone's time who participated in the auction. Its always advised to think twice before bidding or wait till the end if you're not sure whether to bid or not instead of withdrawing the bid at the end moment and ruining the entire auction.

 

This is just my perception regarding such situation and I believe most of the experienced traders may have the same.