If you bid but then don't pay, it seems to be fine by NW rules. It just goes to the second highest bidder, the third highest bidder.... Think about the various setups that one could deploy to dissuade others from bidding on the name. You could use a whole team of buddies with multiple credit cards, even disposable debit cards, to do this.
I just find it ludicrious to think there are people who would rather pay $8k for a name for a third-rate dropped name than just go buy the name off the owner for $200 before it drops. But just my opinion. I'm not saying that NW is doing anything wrong. I'm just saying that there appears to be strong patterns of system manipulation by users.