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You could report it, but I doubt Ebay would do anything. The sale is more money for them.
They let auctions such as "Xbox box for sale" run as the auction states that its a box for sale, even though the description shows the actual hardware. The bids on these scams can get quiet high.
The guy auctioning the m0ney.co.uk domain does state the o is a 0 so in theory in ebays eyes there is nothing wrong with it.
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