The next day he went to register it and found that it was taken... by godaddy.
Godaddy then set it as a "premium domain" and changed the price to $500.
He was pissed.
He accepted the version of the domain with a '-' between the two words instead. He recently emailed godaddy and let them know that he has 800+ domains with them, explained what happened and said "I would like the domain that you took, unethically, for the regular domain registration price that all available domains go for or I will take my ~$9,000 in annual renewal fees to another registrar.
He has not heard back from godaddy. But he switched his searches aways from them.
I on the otherhand, typically only search for a domain if I am willing to spend the 10 right then to grab it.