If it were me, I would offer a refund plus postage both ways. I'm very protective of my feedback.
I try to put descriptors in my listings for material information, and think best practice is to note something like "trimmed" in the title.
I think it is even more important to do so now that mobile bidding is so common and a lot of people don't closely read descriptions and/or they don't always render well on a mobile device. I believe there is a good chance the potential buyer clicked on the photo, saw what looked like a nice T206 and bid based on the photo and auction title alone.
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