In the isolate auction IsolateLiquidation.sol#isolateAuction() the liquidators will just keep bidding a bigger amount in the auction then, the winner will only pay the borrowAmount and receive back all the extra money he previously paid.
The isolated auction doesnt make any sense. It just gives the borrower a chance to redeem his loan. I believe this can be done by just direct liquidation with a buffer period to give the borrower a chance to redeem his loan.
Also, Liquidators are not incentivized to launch the auction at the right time. If he loses the auction he has no reward for doing the job at the right time (the only thing he has is to hope for the user to call executeIsolateRedeem() to receive the bid fines).
