Ugh, sorry you had to go through this. I was in a similar case not too long ago. Basically the same start... the item arrived and a claim was filed stating that

Ugh, sorry you had to go through this. I was in a similar case not too long ago. Basically the same start... the item arrived and a claim was filed stating that the phone wasn't working. I offered to help since it was perfectly fine before I shipped it, but I was ignored. I waited until the last date before accepting the return. As Matt mentioned, eBay basically forces you to accept the return or you lose the item. The buyer never shipped it back so it finally timed out after another 30 days and I was able to file a claim and get my money back. Good to know I can unlink from PayPal since they pulled the funds directly from my account. I was in a negative balance. Here's the kicker. If you decide to checkout on any site using PayPal, they'll actually authorize the full balance behind the scenes. I was definitely surprised when I saw a $400 charge for a $11 item I paid for. eBay sucks for sellers, but you typically still get the best value aside from dealing with criagslist.