Honesty never goes out of style. If this person indeed made a mistake, i.e. did not set up the proper payment plan before listing, then this person should have handled your problem differently. If an effort was made to correct things, you would not have had to waste your time, had to file a negative against him, contact ebid, contact PP, etc. Under those circumstances he could/should have cancelled the sale, and given you a positive feedback. You would have left the same for him. Right? That is a good way to solve the problem until he sorted it out.
Instead is acted like a dope, tried to get you to pay fees, refused to look at his end and figure out what went wrong so he could fix it. Things do go wrong, and it is not necessary to give everyone a negative if something goes wrong with sale (i.e. lost package). If effort is made to make it right, that person deserves a positive feedback for the effort.
You did exactly the right thing. I don't want to deal with someone like that. Every sale is not a drama where we have to contact the seller 20 times to get information or satisfaction. Who has time for that? Better he straighten out his accounts and then discuss selling on ebid with ebid administration.
Again, good for you!!!!