I should take a second to clarify why GameShowFan's bid is able to exist.
JhayPrice's $20 cushion is only valid against future bids from $775-$794.
Because GameShowFan9001's bid already existed prior to JhayPrice freezing at $775, GameShowFan9001's $777 bid still stands. GameShowFan9001 has the liberty to either raise it or freeze it if they choose.
Protip: Don't be afraid to double-check the top bid! if you ever click "post" and a warning in a red box comes up saying "somebody else posted a message, you may wish to review your post", I strongly, STRONGLY recommend you double check and see what was written. It may mean the top bid is not what you thought it was, which may freeze/invalidate your bid. Timing plays a big part in this game!