yes they did.....it was obvious by his starting bid ($99) and the wording of the listing title, that they were trying to give the impression that there was a 16g 3G iPhone in that listing. Even their little disclaimer at the bottom "by bidding you acknowledge that you have read the listing and FULLY understand it" was their hope to get by on a misleading title. I am happy to see that eBay pulled it...
Now that being said, I do think that people who bid it up are stupid and should learn to read over every auction with a fine tooth comb
But it was intentionally misleading
It didn't mislead anywhere, it stated that it was a box, it never said phone in box, it said BOX. I consider sales like this an idiot tax, and the buyer could consider it a cheap and informative lesson for the future.