Did you ever return the item? When you filed the claim, weren't you instructed to return the item at your expense? The seller is not required pay to have the item shipped back to them. Some sellers will reimburse you your out of pocket shipping expenses after you return the item but if you didn't do that, then the seller wasn't willing to pay up front.
You may think that is unfair but this is what has happened in the past: a buyer is not satisfied with the item because it is broken or is not to their satisfaction. They notify the seller and they ask the seller to send shipping costs or refund all their money before returning the item. Once the seller has done this, the once faulty item suddenly is in perfect shape and the buyer refuses to return the (especially if they have been fulled refunded). Even if they were only paid shipping amount to return the item, there have been buyers who would not return the item because, although they did not get a full refund, they did get the item at a discount.
Sellers have to protect themselves against buyers who will keep the item after been given shipping costs or being fully refunded.
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Non payers should get unpaid item strikes and be added to block bidders lists. Period.