hmm, this situation does does seem a bit out of whack. For all we know this guy could have peeled that sticker off the inside of the pommel himself. Maybe this was his intention, in which of course, what kind of person would want to do such a thing?
I also agree with Jedye on this one. You do seem to have the better side of this dispute, but in all reality it is up to paypal to see who is the culprit. Let us all hope in this case, this guy is the culprit.
Before I forget, I would also check the blade for any sign of use. Any Scuffs, scratches, or even cracks. Just to make sure. In case that he provide false information on this item.