Err what are you asking exactly? If you got a refund, you should be happy...
That whole "seller is obligated to send an item" thing doesn't work in real life. All you have to do is say that you reserve the right to sell the item locally and you're SOL anyway.
From legal stand point of view, the notion of "bid is a contract" works in the form the perspective of the seller. If your bid (or offer) is accepted, then, assuming that all the other requirements of a bilateral contract are satisfied, you have to pay up.
On the other hand, all auctions are considered to be with reserve unless otherwise stated (see "Lim v The.Tv Corp. International"), so the seller has the right to reject all the bid in the end.