TKO Notices From eBaY?

I've just been hit with a "TKO" notice from eBaY.
What this indicates is that the buyer of a $450 guitar from my store has been cancelled.
Why? The owner states that the bid and purchase that went through was not his. He's essentially saying that someone hijacked his account and bid on an item that I was selling.

How does this happen? When the warnings have been out there for over a year, people are still claiming that they:
1. must have replied to a phishing email in the last year and their account had been hijacked
2. that their son or daughter bid on an item and hadn't asked permission first
3. that a friend was over and bid on an item using their account and never intended to pay for it, or has reneged on the payment
4. that the seller changed his or her mind at the last minute, and is willing to wade through days of emailing back and forth with eBaY to either have their account closed or have their passwords changed so that they don't have to follow eBaY's rules and regulations.

I'm blogged before on other websites about eBaY/PayPal discrepancies...but never here.
So for the benefit of other buyers and sellers, here's the gup:

Buyers:
Lock your computer when you're out. Don't let your kids access your eBaY account while you're downstairs making dinner, out at work, or sleeping. There's just no excuse for ruining a Seller's life just because your kid has free rein over your finances.

Don't reply to eBaY messages through your email, ever!
Check the address, and if it doesn't star with www.ebay.com, ignore it.
Go to your own personal account, log in, and answer eBaY originated emails through ebay alone.

Safeguard your eBaY password as well as your PayPal password. Don't let anyone else use them! This means...don't leave scraps of paper under your keyboard with your username and passwords scribbled on them! Lock up your information in a safe - or don't write it down at all. Memorize it. If it comes down to having to change your password because you can't remember it, then do so!
Just remember to completely delete the message before your kid or guest notices it.

Sellers:

I can't stress enough that there are buyers and sellers out there who are simply out to ruin your earnings. Buyers scam sellers, sellers scam sellers, and one has to remain extremely vigilant to this kind of terrorism.
Terrorism? I use that word because it's my opinion that the effects are similar.
Buyers can insist that they didn't get what they wanted, got broken items, and plain failed to order the right item. Even though the terms of the auction may have indemnification clauses, this does not help the seller in any way. PayPal does not recognise terms and conditions upheld by eBaY's sellers.
Shall I give you an example?
Seller 1 states: All Sales Final. Make sure you order the right item for your needs.
No refunds due to inaccurate ordering.
Buyer 1 complains to PayPal that he plain "does not like the item" and wants a refund. He files a dispute and then a claim without contacting the seller.
Paypal then freezes Seller 1's account for the total amount of the item (price + shipping).
Various emails run back and forth through PayPal until the Seller 1 acquiesces to buyer's terms: pay all shipping for the buyer to return the item, pay back all shipping and purchase charges, and suffer from the loss of the sale for a month or more while their account is frozen.

Another example might be a seller purposely bidding on another seller's item because of competition. He can turn around and claim that he did not want it after he won the bidding, thus forcing the original seller to relist his item at a loss of time.
This can freeze up a seller's profits by setting him back by 3 to 10 days or more!

While eBaY is very apologetic in their form emails about problems, they fail to act quickly unless a true fraud has occurred (such as bidder's account is hacked, has a fake email, fake name, or incorrect contact data. The big problem is, you don't know a fake account from a real one until all is said and done.

I like eBaY! I've had many a good experience with it. At the same time, as a seller I'm seeing more and more problems that must be addressed.
In particular, PayPal's right to freeze a seller's account due to claims made by buyers. They are not held accountable, under any law - such as that put on banks to insure funds, such as the FDIC. Since they lost a case in court over giving good customer service and providing a contact telephone #, they were still not held accountable for freezing people's electronic income.

One has to wonder at all this hubbub...it's everywhere. Check out:
http://www.paypalsucks.com
You'll be amazed at the horror stories.