Seniors Moment here.

Sold an item, now buyer has chosen to cancel. I'm absolutely fine with that, but now, with the defect system in place, how do I go about the cancelation with become "Defective"  For the want of a better word. 🙂 

Not an expert, you might want to wait for other responses - I've done it several times as Cancellation Request - Buyer Changed Mind and from what I can tell, hasn't caused any Defects 🙂

 

But who knows with this Defective system, I'm not sure how quickly the Defects actually show up (I've only got old ones, so far)

Just choose the first option which is something like - buyer changed mind or purchased in error

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I selected the 'other' option last week and so far no defects have shown up.