You can appeal after you get the item back and before you refund, not before. You need to issue a paid for returns label or else ebay will refund anyway and you won't get the hat back.
Ebay does not do 'neutral' they favour the buyer 99% of the time.
The 161 new items you have for sale do not look like the unwanted personal possessions that are allowed to be sold on a private account. If you are buying goods to sell then you need a business account to sell them on, to be within the law.