How is this even possible?

[shoaltech]

A buyer purchased a PC. Newbie with only 1 feedback. Over the course of the first 24 hours we received many messages from him asking about various things, upgrades etc. Often 3 or 4 messages in the space of 10 minutes or so, asking why we were ignoring him. Anyway, I sent out the item, a PC worth $957. After a couple of days he messaged saying he contacted Australia Post and he wasn't happy with the delivery timeframe and wanted a refund (he lives on Norfolk Island). He also started a return. I said that once we received the return I would refund. I then received a message from Ebay saying the buyer has asked them to step in an help. This morning I received a message saying they'd decided in the buyers favour and issued a full refund.

So, I am now without the item and the money. I lost the FVF and Ad fee, and now have a strike for case closed without seller resolution. The buyer also left neg feedback. 
I have been on chat with Ebay this morning and as I'm sure many will be familiar, it is like talking to a brick wall.

Any suggestions on anything that can be done here?
I really feel like I might be done with Ebay after this.

[gutterpunkz05]

Under your orders,  paid & posted,  it should show the estimated delivery dates, and the current tracking status, including date delivered if any.

Did they open a return request, if so for what reason, or did they open a case for item not received.

[papermoon.lady]

Judging from the feedback he left, he wanted a refund for the options/upgrade he paid for by bank transfer, which he shouldn't be entitled to with MBG, as already stated.

And eBay gave him a refund for the item instead??

And if only wanted a refund for the upgrade, why did he say that he was unhappy with the delivery timeframe of the item?

[arctoph_49]

I hadn't checked the feedback. Yes, he says he wanted a refund for the options. He didn't even mention the item.

[papermoon.lady]

Maybe when he didn't get the refund for the upgrade, he decided he didn't want the item any more either, who knows.

I think we need a bit more details, including what the tracking says.

The OP said "I received an email from Ebay asking me to provide the proof of delivery. It's like they have no idea what they are doing or even read the information provided", so it appears the item is still in transit.

[arctoph_49]

Yes, we need more details.

After a couple of days neither a return request nor an INR case can be opened.

[ramcycle2010]

This doesn't sound right at all, you've got a great reputation and feedback, ebay should be working with you to fix it.

Quite often on chat, it is like speaking to a brick wall. When that happens, I try speaking to someone else, and usually they comprehend the situation much better. On more than one occasion, that someone else has apologised to me for the misinformation provided by their colleague.

So don't give up, eventually someone there will see sense.

[shoaltech]

Ok, to answer some of the questions. 

He wanted a refund for everything, including the upgrades. Which of course I'd happily give once receiving the item back. 

He opened the Return 3 days after it was sent and while the item was still in transit to him. He live on Norfolk Island so there will obviously be a slower than normal delivery time. How it's possible to open a return for an item which hasn't been delivered is beyond me.
Ebay said they closed the case in his favour because the item hadn't been delivered, despite the back the tracking clearly showed it was in transit.

I have just spoken to Ebay again on chat, with no luck. I might try the phone option as has been suggested. The whole situation is extremely frustrating and stressful.

[twyngwyn]

Unless there has been some miscommunication.....this is OUTRIGHT THEFT....good luck!

Have you Googled the address?

[twyngwyn]

Have you tried redirecting the parcel?

[gutterpunkz05]

So don't give up, eventually someone there will see sense.

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Maybe, but if they lose the appeal, then I think their only option would be to push for ebay seller protection, as long as they shipped on time, uploaded tracking (I think there is also a timeframe for that) and 1 valid tracking event was recorded, then ebay should be footing the refund cost, not the OP.

As others have said, I think there is some info missing.