Interesting outcome. So I talked with appeals at ebay, they said that I should contact them when the item is returned, and they would reverse their decision and close the case in my favor.
I let the buyer know this. So he closed the case and left a negative feedback.
I then called ebay back and they told me that the negative feedback stands, but that if the buyer had NOT closed the case, the negative would have been removed when ebay found in my favor
Here's how to add a bidder to your ebay blocked bidder list. This guy is nothing but trouble for vintage photo sellers:
adding ebay i.d.'s to your blocked bidder list