There are two MAJOR problems with this-
The seller selling the fake item knowing its a fake,and,GAI excusing themselves from any responsibility to buy these fakes back and get them out of the market.
I have heard of situations where PSA & SGC have made an error grading a fake,and did the right thing by purchasing the item back and removing it from circulation.
Ebay is also at fault for letting this seller sell the fakes.
Bad news all the way around.