If there is still plenty of time left on a auction you can kick bids. If you don't like the bid amount or what the seller is doing then just find a different seller. There are other reliable sellers on there like Toshi at Dream Stars and Hit Japan.
As for sending Gearbolt back to the seller,not to be mean,but if the guy was acting shady and ripping you off then proof of shipping back should have just come as instinct since it was likely the seller would claim it would have not arrived otherwise. Ebay is in the right on that,as you couldn't prove you shipped the item back. I guess everyone has to have their first bad experience though so they can learn how to prevent it from happening in the future.
I am actually a large customer of Hit Japan, and I have ordered from Dream Stars too, but Dream Stars costs a lot more money that Hit Japan so I usually only try to get rare accessories from them. Although my tranactions with Hit Japan have not been without some frustrations, like ordering a game and only getting 1 of the CDs, then having to argue with them for nearly a week that it is actually a 2 disc game. Still they have been willing to negociate prices and shipping with me and that's a big plus in my book

Anyways, I told ebay flat out that I didn't want to mail back the game to the seller because I didn't trust them and ebay told me if I didn't mail it out right away that they would not let me get a refund. I was totally ignorant at this point in my life that ebay would screw me as well as a scammer/seller would. All ebay did was admit to me they didn't know why the worker didn't tell me to do that (since she never told me to in the logs) and that the next time this happens I should register the mail.
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I had already had to pay the origional shipping, the shipping to get the photocopied manual, and they expected me to pay to ship it back to the seller (I would not get any of this money back). I shipped it as cheaply as I could. According to US law anyways I should not have to mail anything back for a refund because any item under 500 dollars of value which is mailed to you, which you did not order, you may keep (because it's legally yours). Since I did not order a loose, poor condition disc of elemental gearbolt nor an illegally photocopied manual they would belong to me and the person who sold me the game would still have to send me what I ordered. However how often do you think people will take people to court for matters around 30 dollars? Ebay should have been able to tell this is a scam type of practice. After this happened I didn't use their service for over a year or two.