Buyer dissatisfied with product advertised as coming in a damaged box

We listed a collectible doll, in Collectible – Acceptable condition. This is an unopened box, so the actual doll and accessories were untouched, but the box had moderate damage and we listed in the condition notes it had moderate damage. Upon sale, we placed it in a polybag, attached a note that item was listed as Collectible – Acceptable and included the condition note on the note and attached it to the polybag containing the doll and then placed the bagged doll with note into a box and shipped the box.

Buyer contacted as, saying the doll was damaged and requested an undamaged item. I noted that the item was listed as Collectible – Acceptable and had that note, and I also said I was surprised because I thought we had included a note with the shipment. I am sure we did.

Buyer then claimed damage was more than moderate. I said return it and you will be refunded less return shipping and initial shipping. We went back and forth, with him claiming it was and error and he insisted we not dock him.

I had also asked for photos of the item and the shipping box, but he refused, claiming to only have a flip phone, which I guess he claims can’t take photos.

He has now placed an order for a replacement, so another one at $0 cost, so if I swap, I will be out return shipping, plus shipping to him twice, instead of once and he likely will be just as disappointed. He has also left -FB on first order and is sufficiently unreasonable to do so again.

If I cancel the second order and refund the first, how do I guarantee he is deducted for return shipping? If I fulfill the second, how do I get reimbursed for additional costs?