What can I do - buyer says item didn't work.

I sent a remote control car to buyer. Fully tested and in good working order.  He came back said it didnt work, that I had lied on my advert, demanded a full refund, and threatened to report me to ebay.  I asked him to check battery again and if it didnt work to send it back 2nd class post and I would issue refund.  He asked firstly for £13 for new battery, then £13 for postage I refused and said I would issue refund when the item was returned 2nd class post.  When item came back it is apparent he has jammed the battery in incorrectly and too hard to the compartment.  I cant remove it to check it.  I told him  but he insisted it had never worked.  I refunded in full, plus return postage.  What can I do?

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