Update: PayPal/eBay ruled in my favor. YAY!
eBay told me that his claim was considered "Buyers Remorse" and they will NOT refund people for remorse. They also told me this guy has had his account suspended before. The person i talked on the phone at eBay seemed to be well aware of sports cards and the tricks people try to pull, so he clearly saw it as this the buyer trying to abuse the return policy. Glad eBay did the right thing here.
Side note: anytime you have a problem with PayPal or eBay its always best to call and talk to someone instead of doing it through email. I have had nothing but great customer service from both companies when i call them and they have always been very helpful at answering my questions and concerns.