If you sent a Cancellation request and used the correct reason "Buyer wanted posted to location I don't post to" or whatever the wording is you earn a Defect. You need to lie and say "Buyer changed mind". Stupid, stupid system. Why does the system allow an Aus buyer to make a purchase, request the item be shipped overseas when the seller clearly doesn't do international shipping, then penalises the seller!

Lesson learned the hard way.