Item stuck with Canada Post since Nov 14 - buyer opened case and eBay completely refunded them

[2ed.chance]

Hello,
I am relatively new to selling on EBay and have had nothing but positive experiences. However, having dropped my item off before the Canada Post strike and have said item stuck at a complete standstill since has left me utterly useless. Nov 30 -Buyer is upset about not receiving the item, which I 100% understand. I explained the situation to the buyer, provided the tracking information via email as per their request (even though tracking was provided and could be followed on EBay). Dec 6 - buyer opens case with EBay, they put the request on hold until Dec 21, then a couple hours later, inform me that they are refunding the buyer at my expense.
I am confused as to what I did wrong in this situation. How can EBay give my item away, at my expense, when there is zero way for me to get the package back. Once the strike is over, the package is going to still be believed to the refunded buyer now for free. I am out both an item itself and money I paid for the item.
I have filed an appeal today, Dec 6.

[ilikehockeyjerseys]

Here is how INRs normally work during non-strike times, you can skip this if you want: 

If an item does not arrive by the expected delivery date, a buyer can open an Item Not Received request. Tracking doesn't invalidate this protection. Only a delivery attempt does.

Once a request is opened, you are required to refund the buyer before the deadline. If you can demonstrate to eBay that the item was sent in good faith and the tracking is still moving, they will sometimes agree to extend the deadline by a few days. 

Otherwise, if the tracking does not say delivered (or delivery attempt/available for pickup), you will have to refund the buyer before the deadline, or the buyer could ask eBay to step in. If eBay steps in, they will refund the buyer and issue your account a defect.

Here is what you need to know about a tracked item marked as not received during the strike:

During the Canada Post strike, eBay is supposed to be giving Canadian sellers extra protection. Meaning, your item not received request should have been placed on hold.

I would contact the AskEbay account on Twitter or Facebook. Use that specific customer service because they are actual eBay employees. Explain what happened and how it contradicts what is stated on this release by eBay https://pages.ebay.ca/canadapoststrike2024/#ac-1

If they have already refunded the buyer, ask them if the refund can be appealed because the INR should have been paused since you have valid tracking and the order was affected by the strike. If you haven't refunded already, ask them if they can pause the INR.

Here is the exact information from that page:

Are there any protections for sellers affected by the strike?

eBay is taking actions to automatically protect your account from defects, including:

• Late Shipment Rate (LSR) defects  

• Valid tracking upload rate   

• Negative or Neutral Feedback if you uploaded tracking before the case was opened and have a physical scan from the carrier 

• Seller initiated cancellations 

In addition, all Item Not Received (INR) claims made during the strike will be placed on hold until Canada Post resumes regular operations.

If you require further information on these protections, please do not hesitate to contact us.

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