Package unclaimed, returned. Cancel or PP refund first?

[pizza442]

Buyer signs up same day and immediately buys my $395 item. I send Registered Mail w/restricted sig.  'No auth recip'  at address and sits at PO.  Guy says 'tenants weren't home, resend to another address and they should be home'.(yeah right).  Tenant?  Not your address?  Told him HE has to sign for it as it is Reg. and Sig restricted.  Go to PO with ID and tracking and get it. (confirmed by my PO that is all he needed)  Said he tried but 'didn't work' or something so I asked why?  Does your ID show a diff name?  Never heard back and pkg came back.  VERY suspicious.  
Item was 'free shipping' but at $22 for Registered Mail and the fact that it was Unclaimed, I want to do this in the right order so I get my fees back and the $22 shipping.  

Paypal refund minus fees and shipping and no Ebay Cancel Trans?  Or Cancel trans, get fees credited but lose shipping costs?

[countwilley]

wait until the person opens a claim then refund THRU EBAY ONLY !... This way you can protect urself if you get a NEG by saying the person did not pick up. You will lose the shipping though. I lost shipping too. it is part of the game sorry.

[timemachine777]

Don't do anything. If you cancel, you'll get a defect that will not be reversed.

[pizza442]

From my reading on the subject, I shouldn't get a defect as tracking shows the attempted delivery and that the package was unclaimed and returned. As the buyer didn't go get it at the PO, and he knew it was there, he forfeited his Buyer Protections.