Cancelled auction after payment made

[m8_cat]

I can't see how this is allowed. I won an auction for a "Seiko Divers Automatic 4R36-02Z0 Like New NR" on Oct 13, at good price $182.50, paid through paypal. Today Oct 17 I have not received any correspondence so i checked on ebay, I see "Cancellation for this order is pending"  I check paypal and my payment has been refunded. I called Ebay and they checked reason as item no longer in stock...really, Or just wanted more money but not willing to pay for a reserve? Not right Ebay, at least not without any correspondence from either you or the seller. Back to Amazon. Beware of  

[momcqueen]

Technically, it isn't allowed. Sellers who cancel orders that have been completed without permission from their buyers receive what's called a defect on their account behind-the-scenes. Too many defects and the sellers find it very hard to do business on ebay. That being said, ebay cannot physically force the seller to do the right thing and honour your arrangement. I realize you are disappointed and you have ever right to feel that way but there is nothing else that you can do with this seller at this point. You maintain the right to leave feedback for them, whatever you choose. The best feedback is calm and factual. 

[m8_cat]

An update, after seller got my negative feedback and my contact seller message he replied that he dropped the watch while packing for shipment and that us why he cancelled the sale. Just for fun I checked Craigslist in his city, well well there it is for sale. Same serial # from pics in ad. Asking $70 more than what I won the auction for.

[momcqueen]

It's not right, I know. But clearly this seller has issues with honesty, and that's not the kind of person you want to purchase from here anyway. Any seller with low feedback and a pile of top-end items is suspect to start.