I think I found the page you were looking at. The entry is a bit confusing, but they seem to be saying that bade is the past of bid as a synonym for “command,” not in an auction.
That’s actually how I learned it, rather than for an auction.
*Bade *and *bid *are both acceptable past tenses for the verb to bid. In principle they’re interchangeable; I don’t think we can say that one is wrong and the other right in any particular context. In most varieties of English one or other is preferred, depending on the context, but which is preferred in any contextmay vary between different varieties.
In the sense of “to offer a price”, the preferred past tense is bid in AmE (as this thread testifies) and in most varieties of English used in England, and this has been so since at least Shakespeare’s time. But in Scotland it’s bade.
Traditionally, “bade” and “bad” are homonyms. The pronunciation that rhymes with “bayed” is a spelling pronunciation which in most varieties of English is still regarded as a solecism.
According to whom? I just consulted a half-dozen dictionaries, all of which give both pronunciations, but with no usage notes. (Dictionaries usually mark highly stigmatized pronunciations.) Also, the OED gives a number of variant spellings of “bade”, many of which suggest the word was “traditionally” (at least, in the Middle Ages) pronounced as “bayed”.
Well, sure. I didn’t get the sense the OP never heard of “bade” before (and a similar usage to yours was already mentioned), but rather that they never heard it as the past in the sense of an auction specifically.
Yes. The subject title and question in the OP is slightly at odds, but it seems to me as the OP was restricting the usage to the auction in the subject, they were presumably aware of other usages of the word “bade.”