From reading that, eBay have said THEY will refund the buyers of any tickets in full.
I honestly do not see why you should refund, did your'e auction say you would refund if anything untowards happened? Did you state no refunds?
IMO you sold the buyer x amount of tickets for a show, you have cash the buyer has his tickets, auction complete. You didn't sell him/her the show did you.
I honestly cannot stand people that rape ticket agents and then resell to the actual fans at retardedly inflated prices, however as long as your auction didnt see "Will refund if artist dies/cancels" then I see you in no position to offer a refund. eBay have pulicised that they "think" all buyers should be refunded... let eBay refund em.
That hasn't been the case since the end of last year. Now they will refund regardless of funds in the sellers account and pursue the seller for the balance via debt collectors (if the person does not pay up on demand).
This is exactly what they are going to do with these MJ tickets too. Ebay are not going to take a loss on this themselves. Sure they will refund, but they will then chase up the sellers for that money. If you think otherwise then you are sadly mistaken.
Just saw this too, the seeler has completed the auction correctly as above. eBay are teh ones stating that all buyers will receive a refund, unless a buyer stated refunds were applicable if anything happened in their auction description then they have abided by eBays T+Cs. If eBay then want to go giving money back to people, that's upto them.
As for,
I think profiteering from something like this would be a little selfish and you don't strike me as that sort of guy, so sure you will do the right thing and refund. Its what I would do and its pleasing to see lots of places like the official ticket channels and eBay taking a very pro active approach to giving refunds (in full)...
He's not profiteering from MJs death, he was profiteering as a lot of people do from the actual ticket sales, whilst as above I completely disagree with this and think ticket sales should be a more policed to prevent people doing this. At the end of the day eBay offered this "full refund" without consulting any of the sellers.
EDIT - To OP, I just reread opening post, sorry for comparing you to a ticket tout

honest sale, makes a change on tickets tbh lol