At the moment, if someone buys a number of items, and one turns out to be damaged or missing from stock, I cannot mark that item as refunded.
The item has a dropdown for refunding the item, but then there is a second dropdown which only has refund the whole invoice, and nothing for the single item.
I can notify the buyer on paypal, or on a packing list, but it would be more secure for the buyer to see the status of the item on their ebid record.
Hope this is not too difficult to implement.