When ebay close the dispute and refund your FVF they award the non payer a strike and the transaction is then cancelled.

As it is no longer a transaction then neither side can leave any feedback and any that was left for you prior to the transaction terminating would be removed.

I have my settings set to block people with 2 or more unpaid item strikes in the past 12 months, and I just checked & in the past 2 months, there have been SIX occasions where people have blocked from bidding on my items because they have more than 2 unpaid item strikes!

On one hand that is 6 sales that I may have lost, but also 6 occasions where I haven't had to chase people for non-payment

do you block people that haven't paid you or people that have more than 2 unpaid item strikes?