Abstract: A method and system of conducting interactive online auctions are disclosed. The method includes presenting via a network-connected auction system for viewing by users information on items for sale; presenting a first auction interface for a first item; receiving from a first group of users a plurality of pre-cap purchases, wherein each pre-cap purchase entitles user to place at least one bid for the first item; presenting an interactive chat room that enables users in the first group to communicate with each other, wherein access to the interactive chat room is limited to the first auction interface; when the received pre-cap purchases reach a threshold level, implementing a bidding interface having a bid submission interface and a timer; starting the timer; receiving from the first group of users a plurality of bids, wherein the bids correspond to the pre-cap purchases; and awarding first item to user who places the final bid before the timer ends.