Fannie Mae property offer made, listing reduced?

[JENNIFER LOVE]

Home listed originally at $129,900 in 8/4/2012
Reduced to $119,900 on 9/12/2012
Made offer of $109k on 9/18/2012
Bank ask "final & best" b/c of multiple offers
We offer 133k on 9/21/2012
Bank then reduces the price to $110,900 9/25/2012

What is going on. I understand typically the bank reduces the price every 30 days if there haven't been offers, but "supposably" there have been multiple offers made.
Why reduce it again?
Thank you for any information! :)