There is a very unloved convert on craigslist phoenix that was also on E-bay. The original craigslist ad before the auction was $4,500, and as soon as the auction started he would update his ad when the price went up. ex: $1,250.00 - $1,500.00 - $3,650. ( I think it was being shill bid to artificially drive up the price but that is another story)
I don't see anything wrong using craigslist to advertise an auction. Maybe that ridiculously low price is an opening or early bid?