Seller Can't Find Auction Item

Hi,

I won an auction on which I was the sole bidder.  A few days after I paid, the seller tells me that he can't find the item.  He is now offering me a refund.  Is this allowed?  What kind of practice is this, auctioning items that you don't know you have?  Or perhaps the seller was not happy with the sale price?   What should I do??

Thanks

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On the other hand, accidents happen.

The dog eats the tablecloth, the kids get into the sealed box and play with the Legos, the first edition book on further examination turns out to be second printing, the item was offered on multiple sites and was sold elsewhere but the eBay listing was not corrected/deleted, or an item that was on the third shelf from the left I swear I saw it there last week when I scanned it can't be found today.

It's annoying, and the seller may be lying, but really all you lost was a little time. He seller has refunded your money and can't/won't ship.

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