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What about contacting people at e-bay about this, them blocking you may have been an automated response. You could try to reason with e-bay and they may remove the block to your system. You say this user that you gave a negative feedback got his buddies to turn you in for fraud, how exactly did they do this, did they participate in subsequent auctions then claim fraud? What was your feedback rating before you tried to make the sale, what payment options was he supposed to use? Money orders, and other direct payment methods work but if you insist on them using paypal or other third party holding house then you have a paper trail to back up your story, they would not.
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