I appreciate you trying to help, but I'm not a child. Go back and read what I wrote again and maybe you will understand that I know exactly how the system works. In your terms:
Player 1 comes and bids 2 millions.
Server takes his 2 millions, but only posts 11k bid in the AH, stashing the rest.
Now I come in, finding this great imba item for 11k bid with just 1 minute left!
Bid for 13k, all happy - THIS IS THE PART YOU DONT UNDERSTAND. At this point, the auction house tells me that my BID WAS NOT ACCEPTED AND RETURNS MY GOLD TO THE COMPLETED TAB AND AT THE SAME TIME IT INCREASES THE CURRENT BID (FROM PLAYER 1'S 2 MILLIONS) to MY 13k bid, with player 1 still winning.
Seeing that Player 1 has set a high maximum bid on this item, I keep trying higher amounts until finally, I bid 2.5 million. Since my bid is more than player 1's bid, the auction house now tells me "BID ACCEPTED" - it "stashes" my 2.5 million, however it only sets the CURRENT bid at 2.1 million that it cost me to beat Player 1's maximum bid. So in order to beat me, PLAYER 1 WOULD THEN HAVE TO BID WITH A HIGHER BID THAN MY 2.5 MILLION BID.
As you can see, I know exactly how the D3 auction house bidding system works. Please, go help someone else who needs it.