I think he is obligated to send you the item. A seller can end an auction at any time prior to the END of the auction, I believe. But since it ended and you paid, I think the rules state that the seller is obligated to provide the item to you.
As mentioned though, once you complain, etc. I'm sure you will get your $$ back, and the seller will get a slap.
If he told you he decided not to sell the item, then why is he keeping you $$? Those things seem to contradict.
I like how he said in the auction that he was selling this item to buy diapers and formula, but then told you he was in the middle of a 3.0L swap.
Good luck! I once got screwed on ebay, luckily for like $10. A year later I as still out the $$ and the item. It can suck, you have to be careful.
Good luck ! I say just get your $$ back, and move on.
