If buyers are openly admitting the item is defective how are you responding to these requests? Me personally I would advise the buyer that they had opened the incorrect return reason and kindly ask them to correct their mistake. If they wish to remain liars then hit that report buyer link and add them to your BBL.
Sadly though it does count against you in your return metrics, even if a buyer opens a return and fails to send it back or closes it voluntarily and my favorite one...even buyer remorse returns will bump you up toward that 5% increase! Ebay doesn't care because at the end of the day it makes them more money, why on earth would they do the right thing?