So what should I do.
You have answered your own question. Don't close the case, and if necessary escalate it for eBay to step in.
One of the most common reasons why buyers lose out on a refund is that the seller persuades them to close the case on the promise of a replacement. Once closed, the case can't be reopened, whether or not the replacement arrives, or arrives damaged or faulty.
On eBay it's always best to get your refund, they buy the item again if you still want it.
