Buyer received item damage, wants a refund. Reported it as 'not as described'.

[viii.ari]

This guy basically kept messaging me every 10 minutes asking about if I can guarantee him the item. I said yes and told him to make a 'buy it now' purchase. I have a NO RETURN policy clearly stated on the ad of the item.

He bought the item. When received, it was damaged in transit. We had up to 100$ insurance on UPS. He said he 'contacted them' but we never heard anything from UPS and he showed me some bogus looking screenshot of something that had no details, date, etc.

Now he wants to return the item. I told him to keep it as we have no use for it and he can resell it for parts. He in turn decided to lie to eBay and say it wasn't as described. I'm at a loss because I can't get an agent or representative because everything is automated and the phone line doesn't work. It's over 1000$ and they want me to pay for return shipping also and have been holding my money in pending-hostage limbo from paypal. What do I do? This is crazy.