Ebay Bidder Offering Over What The Item Sold For

It's hard not to wander out onto one of the limbs of the old "Assumption Tree" but as was stated, this doesn't sit right. ebay and seller ethics and responsibilities aside, I feel your odds of this being a scam versus legitimate are something to factor in, especially with the woeful story added to pull a heart string. Obviously it could be true but I certainly wouldn't bet my stamp sale on it. I cannot fathom you would have ANY protections whatsoever as a seller if this went sideways.

Send it to the original buyer and be pleased with the sale and a new customer.

your real buyer would be really unhappy with you if you sold it to the loser

Who really knows what the buyer bid? It may have been $300 over the winning bid. Nobody knows.
If I really really want something I will make a ridiculous bid just to try and get it and if it goes for less than my bid
(It has happened!)

Stay with your original contract to the buyer and ebay . Don't get into a legal nightmare ,maybe it is a scam maybe ....maybe ? . Do the right thing .

The original buyer got the lot and all is well. Thanks for all the comments. Overall honesty is the best policy !!

I found myself in a similar situation once. I woke up late and missed the end of an auction. I immediately contacted the seller, and he stuck to his guns - the lot went to the high bidder at the closing. I understand 100%. Don't second guess your decision - you did the only right thing. Remember, a bird in the hand is worth 2 in the bush.