Can a seller cancel a transaction because 'he had sold the item the day before'?

Frankly, I was bowled over when the seller emailed that he had sold the wooden carving the day before and he wanted the transaction cancelled.The day before the item's auction, it already had several bids.I thought a listing cannot be withdrawn when it has a bid on it.

What really irks me is that he feels he's entitled to do just that and we are at a stalemate over the transaction.

Grateful to know who's in the right.Thanks.

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