Checked both of your items. Both say more than 10 available. I belive
you are seeing the number as you are logged into your account and it is
your listing.
Also when you speak to customer service point them to their own policy
on this page, http://pages.ebay.com/help/policies/buying-practices.html.
On the section for "How sellers can report policy violations" point out
the line(s) that say, "When we rev...
It's only a $4.50 purchase. Id straight up just send the refund through
paypal and message the person on eBay telling them that you are sorry
the item was damaged and you issued a refund. Then in a few days try and
get them to change their feedback. ...