Hmmm... I'm guessing that we're talking about a short sale maybe - and the bank did a BPO and came back with a higher price that they would agree to than the listing agent originally set it for. It's possible that there was an offer submitted to the bank, even if the status still said "Active". That's not "supposed to" happen, but I can tell you, it does, regularly, on the MLS. If that's the case, then, there may have been interest at the lower price, but the bank disagreed with the value, and the marketing starts all over again with a bank approved price. You'll probably notice a lot more of this going around as banks get more pro-active about setting a price early in the game, as in HAFA short sales.
But you're right - assuming it wasn't selling, and the seller raised the price, it would seem a little crazy. I'm thinking theres more to the story than meets the eye.