I had a simaler fate about a year ago, i sold a mountain bike on ebay, the guy returned it 2 weeks later saying the frame was cracked, i Know it wasn't when i sent it, but paypal didn't want to listen to me, just took the money out of my account and gave it back to the lying toerag that damaged my bike.
I ended up with a busted bike and no money for it, and because i had already withdrawn the cash from my paypal account i had them threatening court action, bayliffs etc, to get it back.
Tossers!!!!!