Best way forward here, is to first refund by cancelling the order citing ' Problem with Buyer's Address', this will fully refund them and not affect your seller performance.
Then, relist for the buyer to buy and pay again.
Message the buyer this is what you're going to do, and to remind them if they paid with a credit card payment, it can take 30 days for the refund to reach back into the credit card account.
@jvol2002