So Perpete's only reason to reject your idea of a cancel-auction-option is the feeling users may have feel they were entitled to a last-minute bidwar every-time an auction was set on the list.
Ok, well, BB could make up for this feeling of disappointment by splitting some percentage of the tax penalty with the high bidder. It's not like BB needs the money, it just dissolves into nothingness and is removed from the economy. So, the idea is now:
1. Add a Cancel option for all auctions. If the auction is cancelled, the player is removed from the Transfer List and the high bidder's money is no longer reserved for that auction.
2. Penalize the manager that cancelled the auction by charging their team the tax they would have paid on the sale. Include a warning when the Cancel is clicked to let the manager know they will be paying a penalty if they cancel.
3. Refund some percentage of that tax penalty to the high bidder as consolation for having the auction cancelled.
4. Remove the ability for teams to bid on their own players. (SHILL BIDDING)