This is EXACTLY why I only buy or sell machines being picked up in person. Too much risk for both parties involved once you get into shipping. I figure if I want something bad enough either make the drive to get it or wait to find one locally. And if I want to sell something at some point there will be a local buyer for it. You might have to take a little less or wait longer but everything will sell locally if you are not in a rush.
As far as debate here I have to agree seller was wrong and buyer did nothing wrong. Just my 2 cents!