It is a short sale. Many times if you see a price increase on a short sale it is because the lender (who holds the note) have done an appraisal of the property and found that the asking price was too low. The new price may be where the lender has said they would approve the short sale.
This listing is "active contingent", meaning there is an offer currently on the property. They are just waiting for the lender to approve the deal.
Keller Williams Realty