Great news. I assume eBay will then pursue the seller for the money they are out of pocket for having refunded you. It's like that when you get a refund from your credit card provider.
Someone I know was having difficulty dealing with a seller of a TV that became faulty (can't remember the shop now). Cost was about £500 and she had paid by credit card so under the Consumer Credit Act, approached the card provider. They considered all the information and the card provider coughed up the money and went on to pursue the shop for what it was now owed.
I guess the shop paid up quickly with the power of the card provider on their case!