now that something ebay should be checking.

There are millions of listings on eBay, how on the earth do you imagine that eBay could possible check if the item listed is in fact in the location stated?!!!!   It is up to members to report; there is the report link on each listing and the offence is "item location misrepresentation", if there is enough reports about that particular seller eBay will act.  But they cannot act on every single report; that could be easily misused by competition.

That clause 1.5 is a standard get out clause so that if they have evidence the buyer is trying to work a scam they can refuse to refund if they cannot get it from the seller.

They can and will pay out if the buyer has a genuine case.