You said you were the highest bidder from day one, so I'm wondering why you felt the need to submit a higher offer to "beat the bid?" If you weren't the highest offer from the start, the agent didn't have to go back to every buyer who submitted an offer and ask for higher bids. Everyone who submitted an offer wanted the property.
Next time you REALLY want a property, submit an uber serious offer. Offer the highest price that you can, being sure the property will appraise at that price. Be sure, and this is important, to send comps in WITH your offer showing recent sold prices, substantiating your offer price. Some unethical agents will submit offers with inflated prices knowing an appraisal will come in lower, hoping the seller won't want to start over with another offer, and go with the lower price. You be the one to send those comps with your offer, and you can even include in your cover letter why you did. Also, send in your funds verification. This way the seller/bank will know you have the funds readily available to close. State your FICO scores in your cover letter if their high. Yes, it's above and beyond, but we have some pretty competitive areas here too, and YOU have to be the buyer that there will be no questions about. I do this will ALL of my buyers; it's extra work, sure, but why take chances in this crazy market?
Good luck to you!