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buyer said he cant pay and that the amount he entered was wrong.

A buyer stated to me that he won an auction but didnt see how for it went over what he thought was his highest bid. He stated to an in an email he cant pay for the item and swore he didnt put in the winning bid. This might have been an enrty error of his but i want to offer the item to the next highest bidder without canceling the whole auction and starting over. It looks to me that he only went $5.00 over the next highest bidder and it also looks fair to me that he didnt multiple bid to get to that value for I sure dont want to offer it to the next bidder if the price was jacked up a lot by the winning bid(non Payer).  My main question is what do I do next to take the winning bidder out of the picture and offer to the next highest bidder. Thanks for your suggestions and help.

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