Seller doesn't disclose important info on the breeding status of the morph in the ad, which is arguably unethical, but definitely against the TOS rules of auction group. No question about that, just is facts.

Buyer1 seemed to have cold feet after auction close for unknown reasons, and tries to flip snake.
Buyer1 finds out from potential buyer2 that snake has potential issues... which may have been known before she tried to flip the snake, but after the auction. We don't know really why buyer1 wanted to flip the snake.
Buyer1 wants refund, and puts in claim through paypal the same day she posts BOI. Then, continues with claim even after she waits for a refund. Hopefully she meant through paypal, where she had already placed a claim. If not, then that was shady. He did tell her that the bank was going to cut her a check, and she kind of lied repeatedly, made up multiple excuses, and has tried to

the thread instead of stating the truth-- which if she would have, it would have gone in her favor completely. But... she has been super wishy-washy about the facts and has stretched the truth multiple times.
Honey, you can't stretch it anymore than it already is stretched. Its about to bust like a stretch armstrong doll.
Then seller has issues with returning payment to buyer1 because of a second claim thats placed through paypal. Then he negates his promise to refund, and says he will be shipping the snake anyway due to the headache of the paypal claim situation.
Seller should have disclosed the information in the ad, but didn't. He probably didn't read the TOS of the auction group. I doubt that most participants do. It could have been an honest mistake, and he may not have thought about potential noobs buying a desert female. Without a reserve near $1000 or more, he probably didn't expect to get the same price as a male-- like many desert breeders do.

*Soap box alert*
I can say I would possibly buy a desert male because they're awesome, but I would never sell a female anywhere near the price of a male. Honestly, when I see breeders raise the price of a het desert female, I have to question, "why?".
In the end, there should have been better communication on both sides of the deal.

The seller should have been in better contact during the refund process, and the buyer should have been more transparent through the process. This would have likely prevented the problem from gaining so much momentum.
Ending of story: They both did shady stuff and were also both likely ignorant of important information. I believe they'll learn from the experience. But don't miss it... I wouldn't do business with either one of them personally. However, these may have been a series of unfortunate events, ending in resentment and strongly held negative emotions.
