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In this case, the card can still be resold for what it truly is - the reason the seller is upset is that the card can not be resold for what it was pretending to be.
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As much as you don't want to believe it, the GAI holder did have SOME value - if only for the sheer gamblers aspect of it as to why this buyer bought it in the first place. GAI IS (well.....was....at one time) a respected name. Mike Baker IS a good grader. The buyer who cracked it out was hoping to make a monetary score by getting it into a PSA holder. He knew he was not getting a fake card. The same can't be said for a PRO holder. So, yes, the GAI card DID have some value. But now the seller doesn't even have that. He is forced to refund, and is getting a card that doesn't even have the GAI stamp of approval anymore. His option is now, as much as I hate to say it, is to play the "grading" game!!! What if it eventually gets into a PSA 7 holder?? All of the sudden it is now deemed "acceptable". I, for one, am dismayed that this is what the baseball card collection has become.