File the dispute thru Paypal for the rest of your money-You'll get it minus the paypal fees (that they took--Say you paid $10 & all Paypal fees were 1.00-You'll get $9 back-he doens't get to keep the $1 either it was a Paypal fee)...Yes, he can still cancel the transaction...Don't let him fool you..

I sold something for a friend (that she told me worked) Buyer got it said it doesn't, so I said return it & I will return your $...So I then went in & chose 'Resolve a Problem' one of the option is 'we agreed to not complete transaction, buyer is returning item & I will refund & final value fee granted once other person (you) agrees to it...So he can get his $ back...don't let them get away with that...there is no reason for that...His mistake, not yours.

I'm almost positvie you'll get a full refund...& I would leave a neg now since he is being a meany. I would have settled for a neutral but now he is playing games & should get a neg.

good luck! let us know what happens.