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Need help navigating a problem return

So, I had someone send me back a part they ordered for a guitar.  They ordered it but it was not the correct part for their guitar.  They sent me photos showing it did not fit, but one of the photos also showed they did not have the correct guitar that this part fit, which I explained to them, and even though I had the listing marked no returns, I told them I'd take it back as long as I got it back in new condition.  Well, I got it in the mail today, and the part is not in good condition, there are pry marks on it from them trying to force it open (it's a snap closed battery holder for an acoustic guitar).  Is there a way for me to deny a refund based on the fact that they broke the part?  When they sent me the photos asking for a return, the part was not broken in those photos, so this damage to the part happened AFTER they asked for a return.  I went to My Ebay to address this and I don't see ANY option other than to refund it in full.  I don't see a "report buyer" or anything.  There is a "report a problem with this return" button, but if I click that, it still tries to force me to give them a full refund on the next page, which is not fair to me since THEY damaged the part, and did so AFTER I made an exception for them and took the return against my better judgment.  Is there a way for me to deny this refund or am I just stuck here? 

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Need help navigating a problem return

Also, if I go the the transaction info page, there IS a "report buyer" button there... is that my only option, to report the buyer in that manner?  I really don't want to refund a buyer when they broke my part after the fact.  It's enough to make me want to just stop selling here and only sell on the other site I sell on... 

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