Starting Bid: 0.0025 BTC
Min. Bid Increment: 0.005 BTC
My bid was 0.0075
Wouldnt the next valid bid be 0.0125?

I assumed the min bid was a typo based on none of the earlier bids being disqualified, but technically you're right.
Based on the rules in the OP I am willing to agree you won.
Cheers