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Buyer returned new item after he was done using it. No returns accepted

Try to be short and simple. I sold a new brand name cordless ratchet. Listed as open box flawless never used.  Tool only included in description. No returns accepted. Buyer recieves item. Funds are released. I spend on bills .and keep enough to ship out next item ending soon.. buyer requests a return that ebay says im required to accept. Buyer wants 20 percent discount because parts pieces missing item not as described.he was expecting the box and papers. I offer to send the box and papers. He declined. Too much trouble he says. 20 percent or refund I offer 10 percent. I only have 3 dsys to issue refund.He declined after stating he was busy all day pulling parts at junkyard all day and stated he will jusy clean it up and send it back to me. I asked him to send pictures of it before shipping to verify its condition. I never heard back. Shipping label sent that day. Almosy two weeks he waited to ship it.. by this time. My other item has sold. All funds went on hold for the pending refund. I couldn't ship out. . 3rd item was ending. I had to cancel that auction, and lose out because I cant even ship the second one.  I manage to get funds in by the time the ratchet shows up to verify and send a refund. Upon inspection. The ratchet was obviously used. I cant even get half what it was worth. I tried everywhere to find how to do a percentage off for damage from usage. Diminished value. So I go to the next step on the return. Expecting it to be there. And to be redirected to paypal before sending the return.. but there was no redirection .I had an option to report a problem. And it sent the full refund . Even after I reported him. Now I cant sell anything. My profits after months of selling were lost with this ratchet. Because a buyer didn't get the box at the same time as the ratchet. And kept it for almost 2 weeks using it. Returns it. And gets no repercussions.  Ive lost .. now I'm getting an invoice with seller fees and the shipping item back cost on it. And its sitting here. Not even worth all the fees I have to pay. Where is my protection.  I tried to get holds on the refund right after it went out. I cant message ebay. I cant call with the hours I worked. Im at a loss

 

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