How Would You Handle This BrickLink Issue?

[StLBrian]

A buyer recently asked to return a large Lego set they bought on BrickLink. The box was literally perfect when I sent it in the snug 'frustration free' cardboard box.As you can see, it did get a bit damaged in transit, but (to me) it's nowhere near "pretty beat up" as the buyer described. 

Of course, accepting the return means I'd be out selling fees and round-trip shipping, which totals around $60. Recognizing this, I offered him a small discount. He rejected and filed a claim with PayPal. The individual is apparently a reseller who is uninterested in less-than-perfect boxes. I am expecting PayPal will side with buyer because it seems like that's eBay's default.  

So what would you have done? How much of a discount would you have offered, or would you have just accepted the return request? Do you have anything in your store's terms and/or the item listings to head off such situation?

Incidentally, do you ship the frustration-free packaged box in a second box? 

Unrelated, have you seen a large increase in buyers ghosting after invoice; particularly those with minimal feedback? Typically, I just cancel the order and put the item back into inventory. Do you leave negative feeback?

[Bricklectic]

The standard of BL should be B2C which of course this meets. Vigorously defend yourself here. Although, it's rep dependent over st Paypal. No one can predict.

[StLBrian]

Thanks much for the response. I'm hopeful that an actual human reviews the case. The only other time I have had an issue was with a buyer on eBay (an outright fraud situation) and their system automatically ruled in favor of the buyer within seconds. Because of that eBay experience, I pretty much exclusively sell on Bricklink where there seemed to be a better clientele.