Okay so i was selling this item (iphone 4s) i put it in great condition and works well and everything. But then i went to the beach and kind of water damage it and there's now a crack on the screen too. I went back to ebay knowing that i cancelled the item. Then log in a week later find out the item was not cancelled on the listing at all so the auction was over, then i private msg the bidding winner and told him what happened to the iphone. He was upset and said would file a complaint and everything. Can he do that? I mean i'm trying to give him a refund and he refused and said he wants be to buy a new phone and send him that(since the one i posted works well and no damage at all) or else he would file a complaint or something since its going against the ebay policy and everything. And i actually forgot i have moved to another state and posted the iphone to my old location in it. Is this a big deal? Should i worry? Please help
Added (1). Thank you guys so much for your answers! I was worried for nothing then! Thank you all i really appreciate it.
ps: he already paid yet he would not accept my cancellation notice. So how i'm gonna refund him? He paid through paypal.