No,

You are in charge of your auction under your terms, not the buyers terms, you did nothing wrong, if i were you i would refuse local pick-up as it was not offered, if the buyer is not happy with your terms the buyer should not have purchased that item, maybe ask the buyer to cancel the sale (only if you want to) else the buyer has an obligation to pay for the item and posting costs

end of story.

good luck with it, i know there are some weird folks out there in this world and we all come accross them now and then.