She has a newborn, that in itself is time consuming, and she seems to be having a life too
Oh, come on! She can't have a newborn AND a life believe me I know 
I'm glad the ending is one that the OP is happy with. I know a lot of us would have liked to see CF friend dragged naked over broken glass behind a raging hippopotamus, but we can't always have what we want in life.
I choose to believe that CFDH is telling the truth - that he was so incensed that CF had robbed HIS DAD, that he confronted her and threatened to push rabid wombats up her jumper if she didn't take down the listing. And that he then said "Okay, Sheila (because it is well-known FACT that all Aussie women are called Sheila) To make sure that you don't twist me Dad's arm to get this back, I'm giving it to him as a prezzie from the ankle-biters - and to keep it legal, I'm gonna match your top bid of $400,and give that to your bessie mate, and hope that she still is your bezzie mate after all this. And by the way - that posh handbag you were getting for Chrissy - forget it! There's a set of Apostle Teaspoons on E-bay - noticed whenI looked at the bids. They cost $15. Do you want them wrapped individually or inna box?"
And as he's walking off to make the bank transfer "I still think yer bonza - but don't do it again, right?"
Mind, if I was the OP i would never be able to have the same relationship again with this person, even if I decided to let bygones be bygones for the sake the blokes.