Newsflash: Fraudulent Competing Escalation Clause

Dollar amounts slightly skewed to retain anonymity.My partner and I submitted an all cash offer, 25k over asking with no contingencies, but right to inspect. Our initial deposit was a low ball at 7.5k, but we were confident we would get their attention. The escalation clause was +1k on any competing offer capped at 636k.636k is almost 100k over listing price, plus it’s a pretty specific, non-round number.Seller agent informs of a competing offer at the same exact escalation cap, and that’d we need to up our deposit amount. I’m no mathematician, but the odds of a competing escalation clause landing on the exact same capped amount close to 100k over asking sound improbable.We take it with a reluctant, extremely skeptical grain of salt. The competing offer was listing price, mortgage contingent(seller agent shared competing clause with much redacted but left mortgage contingent box checked ), 35k deposit. We counter at 22k deposit. Seller asked for 25k, we finally offered 25.5k to show good faith.But the agent wants new terms now. They want new offer at 636k with no escalation. In our contract, we retained the right to view competing offer. Our broker asks for proof of the second offer to which he received push-back from seller agent.Finally, after more back and forth and shady fuckery, agent informs that seller went with the other offer. Why would one ever choose a less attractive offer? We were cash over mortgage contingent, we upped our deposit to over the requested amount, but we wanted to keep same terms and retain the right to view the other offer. If the competing offer exists, what is there to hide and why get hung up on changing the terms of our offer?