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They have been doing this for a while now - they also default new terms added to the MAXIMUM current bid - how shady and underhanded is that?!?!?!
I didn't know about that, but I do know that when you add new terms they put your site at #1 for the #1 price whether you like it or not. I've complained about this, but they said that's the way it is and you have to manually change it.
The only good thing about this is there has been/is less competiton than adwords because it takes so much more time to get your campaign where you want it to be.