[Disclosure: I used to work as a customer services rep for a global oil & petroleum org as a 'Shit got escalated to Third line level' of stinks]. Short answer

[Disclosure: I used to work as a customer services rep for a global oil & petroleum org as a 'Shit got escalated to Third line level' of stinks]. Short answer opinion is - Just refund him the money and be done with it, your life will be easier. Not saying that the customer is right (they certainly aren't imo) but for 200 bucks to have that a-hole out of your life? A bargain compared to the stress and hassle it has already caused you. Some people have nothing going on in their lives (or live in the alternate world of keyboard warriors) and will just keep on and on since it gives them a target to take their misdirected rage and frustration out on. TLDR; Refund the A-Hole and be done with him. Sure, it is not right that they are doing this (and 200 bucks is a lot) and also bullies and idiots need to be stood up to but on the other hand think of what it has cost you so far in terms of stress, PayPal disputes etc.