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Feedback should be honest and to leave a negative when a refund was offered is not honest.
Many of my styling ponies had to be cleaned after I deboxed them to remove residue and some marks.Sadly Hasbro's items are not always mint in their packages, as we feel they should be.
MLP collectors have, for many decades, had to put up with sometimes glaring and obvious factory flaws. Misprinted painting, hair loops and snags, tape residue, marks, stains, and odd smells are just a short list of examples. This really has only gotten worse in the preceding generations. G3s have terrible paint sometimes, nicks in them, embedded bits of other plastics, glue in tails that was quite sharp and poky, amongst other things. Most of the G4s have serious issues right out of the box... I am sorry to hear that the buyer is unhappy with the condition of their received item. However, if said purchase was from a MIB status, the seller should not be held responsible for MIB factory flaws, including chemical smells. Those happen in transit from the factories in China sometimes even... If you want to return it, you return it, but you don't take it out of the box and clean it up and demand your money back. I hope both parties can come to a resolution with this one...
I viable solution was offered to you, but you chose not to take it. Sellers are not required to give partial refunds, however you chose to attempt to extort it. You really need to familiarize yourself with the way Ebay works. You deserve the neg feedback.