I personally just move on to the next highest bidder or re-list.
I have had it where I have opened a case against someone, and then out of spite, they paid for it, got the item, filed a case against me and then left a negative, kept my item AND got their money back. Now THAT brings unwanted attention.
I would just email them asking to cancel the transaction, personally and just get you FVF back and re-list. If it is a category issue, where you can only list a certain amount of that item, then I would try the second chance offer to the next person.
Just my experience though.
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