It seems the previous guess is always placed either one up or one down from the entry box. So if you're guessing "V" words, then type "apple", then "apple" will show after "vodka". So the list is not getting re-alphabatized.
Right. My word was before "wizard," and later I guessed "yesterday," which is after wizard. It put yesterday adjacent to the entry box, before wizard. Same is true for words before the word. Basically, if I make bad guesses, it doesn't list them in alpha order.