ebay eBay Inc. Failed to release $700 in fees San Jose California

I was the ebay seller.  Buyer claimed the package did not contain their item.  Box had repackaging tape from United States Post Office on it.  Ebay required buyer to return empty box and then refunded buyer the money so as the seller I was out both the item and the $700.  Both buyer and seller have a good reputation on ebay.  Given that ebay acted as agent and collects 10% I think they should have insured this transaction if they were going to issue a refund.  

Customer service was also dreadful through most of the process and wasted a good deal of my time.  Final person was good in explaining the situation and at least refunded ebay fees though nothing more.