There are very many items on Ebay from USA where the P&P exceeds the cost of the goods so according to you there must be many stupid people or it would be pointless them bothering to list it on the site.
You do realise that the item is in the US? The postage is calculated from the US to the UK and is coming via UPS international it works out at just under £178 after conversion, still expensive but not necessarily a fraud.
The obvious answer is to buy from a supplier in this country!
If you use eBay every day like I do, then you get use to these sort of things. Even UK sellers sometimes add larger postage rates to cover costs. This type of thing as being going on for ages, and eBay made attempts to prevent this happening without much success.
You will also find on occasions, that sometimes the sellers prices on articles rise suddenly, due to a glitch in the eBay system. But this error is usually found fairly quickly.