Will ebay cover non-ebay purchased items?

Kinda tricky situation.
I purchased a 100% waterproof bag from ebay for like $10.
The one with a strap you put on your neck.
Ad.stated that the bag is heavy duty and 100% waterproof.

When I received it I carefully examined it for defects. Didn't find any.
So I took it for the first bicycle trip. I put iphone, car remote (no keys just a small remote) and I. D. (driver license) in it.

On the way back a heavy rain got me but I wasn't worrying at all because all my expensive stuff is safe.
When I got to my car I realized that my iphone ($650), my remote ($250) and my ID (free I guess lol) are all destroyed because the bag was full of water. When I examined it. It appeared to be broken where a strap is detached to a bag. So basically a weight of iphone which is yes pretty heavy and remote which is very light, pulled it down hard enough to create about 1/8 inch hole and 25 mins of rain was enough to make a bag full of water.

NOW the question is, who's gonna pay for it?
Can I solve it with ebay? Coz obviously a seller won't agree to pay almost $1000 of loss…
If no, can I go to court with it to sue ebay and/or seller?

PS I'm not that rich to go spend $1000 just like that for someone mistake…

All ebay would cover would be the $10 you paid for it. Anything else, and you'd have to sue the seller. And even that is a long shot. The person to sue would be the manufacturer.

EBay nor any other place will cover secondary damages. You can try to sue the seller in small claims court but even there the outcome is not certain. No judge will even consider letting you win against eBay in this matter since eBay didn't sell it to you.

"When I received it I carefully examined it for defects. Didn't find any." The seller probably didn't either. If you win in court against the seller the only thing the judge will likely award you is the price of the item you bought from them.

No the bag manufacturer is the one you would need to sue. Good luck, it'll probably cost more than a thousand dollars to do anything about it.

EBay is not a party to the transaction. You can certainly sue the seller for fraud and try to prove damages resulting from your reliance upon their false statements.