Specifically, in regard to a buyer you cannot trust, or have good reason not to believe is buying in good faith, eBay make it very clear; if you do not trust the buyer, you do not have to complete the sale. Do not post items to a buyer you think is likely to be dishonest.

They may threaten you with internal bulsh!t strikes, and the seller may leave negative feedback, but you have the right to object and reply to negative feedback, and to ask for it to be withdrawn.

Either way, negative feedback that is honest and replied that you had evidence that the seller was dishonest, is not likely to effect your standing on eBay or buyer/seller decisions to trade with you.

You should also be able to get your final valuation fees back provided you relist the items for sale on eBay. Pick up the phone and discuss it directly with eBay's phone monkeys. You should be able to get better results and advice over the phone.

Act in your own best interests here. Don't get burnt.

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If it were my goods, I'd tell the guy that, given his purchasing history and reputation, I would not be completing the sale, and that I would prefer he not bid on any further items I list in the future.