Ebay buyer problem...what do I do??

I dunno man, I would be pissed too. It doesn’t say that the motor locked up, and it clearly did. I would’ve wanted to know that, especially if it was mis diagnosed as a tranny problem. If you had stated exactly what you stated here there would be no problem. By saying 1st or 2nd gear went implies a more thorough diagnosis. I think he has a case for getting his money back. I don’t see how it could’ve had compression if the rod was busted though? Not saying you lied, I’m just saying there is more to the story on either your side or his. Shitty situation.