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IMO the seller should accept a refund of the card.
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IMO the seller SHOULD NOT accept a refund of the card. It is not in the same condition as when he sent it out (ie, it is not in a grading companies case).
I was totally on your side until you cracked it out. Once you cracked it out, all bets are off. ALL of the grading companies (PSA, SGC, even CGC for comics) have warranties that entail the case being non-compromised. Once you compromised the case, as much as I hate to say it, you are own your own!