Seller has cancelled my order

I bid on an item which I won & paid for, then the seller cancelled my purchase, says he can't find the item which seems like a bit of an excuse. He has refunded me but I didn't know you could do that, does that mean if I sell an item & I'm disapointed with how much I got for it I can just cancel the sale. I can't leave any feed back because it's listed as an unpaid item in my account. His feedback is all good but he could do this alot but cos he's refunded people he can't get any bad feedback.

I thought the idea of an auction sale was you took your chance & accepted the outcome.

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