I created a bidding war in Plutus Playground between 5 wallets.
Wallet 2 bids first and then is outbid by Wallet 3 and got refunded as usual. Later on when Wallet 2 went to bid again with a higher amount only the first unspent Tx was used as an input.
However later on Wallet 3 was outbid by Wallet 4 which was outbid again a few slots after. Wallet 4 then placed another bid, but this time when Wallet 4 placed its bid, it used 2 inputs (the previous change amount plus the refunded amount) to cover the bid.
In both scenarios, both wallets had enough in their first unspent Tx after their initial bid to cover the next bid they put in. This would make me think that the wallets don't necessarily spent their lowest UTxO first since only one wallet used their refunded bid in addition to their first unspent Tx.
Why is this?
Images below show what happened.