i expect what happened is that he made payment which comes out of his DD... even though it seems you had the dough they never received it as the DD fails after the transaction. This puts your customer overdrawn with PP... so they then look at you to cover it.. sucks.
This is why many traders stop using it.
Have you ever thought of getting a merchant account with your bank? then set up with www.protx.com?
Cheaper CC charges and you press OK to accept the payment. Like a virtual terminal.
You can then tune your ebay in to accept CC payments through protx only.