Truthfully, I think negative feedback is more than fair in this scenario. As a seller, you list an item, and while it's for sale and then purchased.. it gets lost? How hard is it to keep something put aside, especially considering you plan to enter into an agreement with someone to purchase said item? With all due respect, to buyers it will look like you either didn't care enough, or you're incompetent.
...and be honest, now that you got dinged you will probably be more prudent in the future so this doesn't happen again. If you didn't get dinged... would you be overly concerned about this happening again? Probably not....
If a buyer reneged on a purchase because he "lost" his money.... how understanding would most sellers be?? Think about it...
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