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Guaranteed Delivery vs. lost in transit

How does Guaranteed Delivery work when the package is lost in transit, or ripped open and the contents removed before delivery?

Since eBay policy is that both are the seller's fault, the seller gets socked with a "late delivery" defect, as well as the  monetary loss of refunding the buyer, plus the original cost of the item, and the actual cost of shipping.

With Guaranteed Delivery, supposedly eBay will recompense the buyer if the item isn't delivered on time. That could save the seller some of the monetary loss.

...Or will eBay make an exception for packages lost or damaged in transit, declare that Guaranteed Delivery requirements have not been met, and ding the seller as usual?:

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