Ebay case dispute.freaking out?

I sold an iPhone 5 on July 8th, and on July 21st the buyer opened up a case against saying that the phone I listed as "For Parts or Not Working" was not working. He stated "iphone is stuck on iTunes restore mode and will not restore. It will not restore which makes it useless since it can't be used. Would like to return item for refund, thanks." He did not respond to me email trying to show him how to fix this problem and on August 17th (after I was able to use the money I had received from paypal) the case was "escalated." I thought for sure I was going to win this case due to the fact I had listed it as "For Parts or Not Working" and I'm a college student and spent some of the money and do not have enough to issue a full refund so I'm freaking out. I waited 48 hours and the case has been escalated further… I just want to hear from someone who can maybe tell me what to expect here. I did not try to steal this persons money and felt I had listed the phone properly (despite the fact that I was able to restore it the day I sent it to him). Any help would be much appreciated!

I would put on the escalated case if he read the auction it stated it was for parts not working and what will happen is ebay or paypal will review the case & look at the auction

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