The Seller should have just Cancelled the Sale through EBay - More Actions. Your Refund would have been available in a day or so. If he has just Refunded through PayPal. Ebay won't know it is connected to your Purchase. Your Payment will have to clear into the Seller's Bank Account before it makes it's way back to yours.
You can open an EBay Case for Item Not Received one day after the last Estimated Delivery Date if you haven't been Refunded by then. Leave Appropriate Feedback.
