I would refund. If you think you can get the same amount again.
Just because you said no refunds, doesn't mean Ebay won't enforce one if he goes that route so you may want to do it before Ebay does and locks your account.
I agree with the buyer that the sticker destroys the item. I never agreed with those authentication companies putting stickers on the item. Since this wasn't disclosed he has a case.
Even if it can be removed, the buyer may be afraid of adding more damage and not having any case afterwards.
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