Buyer returned an item damaged and warranty sticker tampered with.

Hello, just looking for some advice.  My buyer purchased a mint second hand Sony CD player from me (hifi separate).  Shortly after they received the item they opened a return stating it powered on, but didn't play CD's. I thought it was odd as it was fully tested prior to dispatch.  I contacted them via eBay messages to try and understand more about the issue,  during the communication they told me it was to replace an identical unit with the same fault (yes, I got suspicious at this point). It has just arrived back to me today, first thing I noticed was the box it was returned in was very small with little to no protection on the bottom or top , removing the player I could see the facia adjacent to the bottom of box is badly damaged.  I then noticed the tamper proof sticker on the cover has been partially removed.  Even more odd the RCA leads I supplied have had the ends chopped off ! 

My question, when I go into the return on eBay and select "I have a problem" then "item returned damaged", my only option appears to be to offer a partial refund.  In this case,  I do not want to give any refund as the unit is now worthless .  

Appreciate any advice how to deal with this situation.  Many thanks 

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