Someone has asked for a return and there profile now says No longer a registered user what do i do?

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If the buyer in question is no longer a registered user then he or she will not be able to escalate the case for a refund, so you won't need to worry about the buyer asking eBay to step in and force a refund in relation to the transaction.  However, the buyer may subsequently open a case against you on PayPal now that he or she is no longer a registered user on eBay, although if the buyer still has not opened a PayPal case against you by the time one hundred and eighty days have passed since the date of payment then he or she will have no means of being able to open a case against you in relation to the item in question in order to try to force you to issue a refund.

 

Given that the buyer is no longer a registered user my guess would be that eBay have chucked him or her off of the site and closed the buyer's account down.  A buyer with a justifiable reason for asking for a refund via the eBay Resolution Centre would not just close his or her eBay account down before the matter had been dealt with, which leads me to suspect that the buyer may have been chucked off of the site.  eBay must have felt that there was something suspect about the buyer to just chuck him or her off of the site for good like that, so therefore I would hold onto your money for the time being and wait to see whether or not the buyer opens a PayPal case against you in relation to the same transaction.