eBay doesn't arbitrate individual returns. If a buyer is unhappy and they open a return - you have to resolve the return either with a partial refund (that the buyer accepts), or by providing a return label (and a full refund upon the return of the item). You should not ignore a return, because if you do the buyer can ask eBay to step in. eBay will close the return in the favor of the buyer because you did not resolve it with a refund or a label. The result will be that the buyer will get to keep the item and the refund.
eBay works on a system where it is up to both the buyer and seller to act in good faith. They only take action against buyers or sellers when there is a pattern of bad faith activity that is reported. For example, if a buyer opens up multiple returns for bad faith reasons, and enough sellers report the buyer, eBay usually will remove them from the Buyer Protection Program. Meaning, they cannot make returns.
Whether you were right or wrong in how you listed your item, you should always consider the liability of a return when listing an item. If the item is heavy and costly to ship, you may want to be as conservative as possible with your description of the condition in order to lower the chance that a buyer has unrealistically high expectations for the condition of an item.
When you describe an item, let's assume you are doing it honestly and in good faith. You have to strike the balance of promising a condition that will attract buyers and allow you to sell your item as quickly as possible for the best price, but also not over-promise, which might lead to a return if the buyer's expectations are too high.
In your shoes, I would approach the buyer in a friendly and professional way to see if you guys can come up with a partial refund that makes sense for both of you. Meaning, they are happy with the refund and still get them item, and for you it costs less than the economic cost of facilitating a return. As you admitted yourself, new-open box may not have been the best choice for condition. It sounds like it is possible that this buyer isn't scamming you, it's just a disagreement about the condition, that does happen sometimes when selling things online.
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