I have been on both ends.
As a buyer, I have a near infinite amount of understanding if a seller loses a fixed priced item I have purchased at market price. However, when a seller loses an item I won via auction, at a better than market price, than I am not as happy. My feedback in a case like this will likely depend on how frequently this happens to the seller. If they exhibit a history of not honoring winning bids, feedback will obviously not be positive.
As a seller, I sell fixed price items and following my apology to a buyer for misplacing their purchase, my first offer is to locate a close as possible replacement followed by a refund or credit towards another item.
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