Problem buyer buys 2nd identical item from me

[americanlynx]

A buyer claimed an item was not received, USPS tracking showed it was delivered without any problems. Buyer started a claim with eBay, which out my funds on hold while eBay investigated. Case was closed after review, eBay ruled against the buyer. 
Now this buyer has purchased a 2nd item (same item as before, as I have 4 for sale at the moment). My question is: do I send this customer the 2nd item, as he has already paid for it, or do I refund the order and block the buyer? 

[comics-scifi-collectibles]

@americanlynx   You should have blocked this buyer as soon as they filed the first false case that way they couldn't buy from you again.

Add the buyer to your blocked list here>  

https://www.ebay.com/bmgt/BuyerBlock?

I would cancel as problem with buyers address since there was a problem delivering to them before.    Canceling the order will initiate the refund.  

Refunds, even for order cancellations, come out of your available funds not pending or held. If you do not have available funds then eBay charges your back up payment method for selling costs.

Have you entered your backup payment method for selling costs here: https://ppcapp.ebay.com/myppc/wallet/list Select Manage under the method you want to use then select Preferred for selling costs. I use a credit card.

Once you issue the refund and the buyers funds are released from being held or finish processing then the buyers payment is released to you.