Questioning a Seller's Discretion to honour a sale

[pauloholic]

Quick question - I bid and won an item but no sooner had I paid that the seller sent a refund stating they were out of stock. The seller then immediately relisted the item at a higher price.

As they did not sell it at the price they requested, they dropped the price again and it remains unsold - currently at a small difference to my original winning bid. 

Most may now be thinking why not just go and buy the item... but for me it's the principle that as a customer I was misled.

The seller has a 100% rating but I feel bitter because as the vendor they didn't use an asking price etc etc.

I'm guessing a vendor is within their rights to cancel a sale with false reasoning, but as this is the first time it's happened to me, it feels like a breach of integrity.

Thoughts?