Buyer hacked an Iphone I sold on Ebay now Pay Pal expects me to give him a refund

I sold an Iphone 6 on Ebay.  It was listed as network locked, Verizon Phone.  As soon as the buyer got it he paid someone to unlock it and I suppose he tried to use it on a different network and wasn’t happy with the signal.  This phone was brand new, but it was locked to Verizon.  He first filed a complaint with Ebay but they found in my favor stating that he had buyers remorse.  When I refused to refund his money thru Ebay he threatened me and said he was going to report the phone stolen and report to the police that I stole the phone.  I ignored his messages.  Now he has filed a dispute with Pay Pal claiming that he cant get it activated with Verizon because it is stolen which is a load of crap.  I spent a week at the hospital while my father had open heart surgery and didn’t check my email for a few days so I didn’t get a chance to respond to this claim until the last minute but it seems like it didn’t matter anyway.  I submitted my messages from Ebay showing he paid to get the phone unlocked and the Email from Ebay showing that they had closed the case in my favor.  I also sent them a copy of Verizon agreeing to activate the phone for me as an anonomous customer.  They can easily look at the listing on Ebay and see that it was a Verizon phone and it was network locked, but they are expecting me to accept the phone back and refund this jerks money.  I am not going to do it.  I don’t know what he has done to the operating system of the phone and I’m no specialist when it comes to programming cell phones, so I have no way of ever knowing what changes he has made to it.  I am thinking of getting an attorney because I am not willing to accept the phone back since it is no longer in its original state.  Anybody have any suggestions as to how I should proceed?

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