The auction says "Sony PlayStation 3 PS3 NO RESERVE, HOT HOT HOT" and lists a bunch of PlayStation 3 details and specifications and shows a photo of the console.
If you don't carefully read the whole text you may miss this line: "note: you are not bidding on an actual ps3, you're only bidding on an e-mail address (Hot_PS3s@hotmail.com), winning bidder will receive password".
So what happens? People desperately looking for a PS3 start bidding on this e-mail address, thinking it's a real PS3 console. The auction received 29 bids and ended on $890.