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Fine ....the world is unfair. One of us had to lose out financially and in this instance it seems (well, is) the party that made an error, didn't honour and cancelled a transaction hasn't lost out, whilst the person that did everything on good faith has. Anyway, it gets filed in the 'good to know' section!
I feared that might be the case - whilst there could be risk of abuse/fraud, in this circumstance it's absolutely shit/unfair. I pay someone x amount in good faith; they decide they won't honour it and refund less than I paid! very shit!