update
after talking with a "manager" at Ebay and explaining the situation they ended up undoing the hold on my PAYPAL account and credited my account back the money they initially took out. They did not end the case against me though which I thought was strange. I think the guy on the phone was convinced that this buyer was trying to pull a scam; or he had info or knowledge that this buyer had tried to do it before or had succeeded in doing it before. He never really said either way so I guess I'll never know. the whole call took about 5 minutes LOL
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