I believe the buyer should get his refund on that thing. But only when the seller has the unaltered item firmly back in hand. It can be relisted with little loss. Sadly, if you want satisfied buyers, sometimes you just have to give an asshole his due and go on to the next sale. Your reputation is worth more than such a small victory, assuming you do get the victory. It , eventually, really is bout the big picture.
Tom Sanders
Lansing, MI USA