Does this sound right? dispute

[Marne]

2 weeks ago i bought a bubble lamp for dd2 on e-bay, seller stated 'next day delivery', a week later and no sign of the lamp, i e-mailed twice and was told they would look into it, 3 days ago i opened a dispute against the seller and sent another message explaining that i needed tohe lamp for my autistic daughter bla bla bla..., anyway he/she wrote back and said the item had been returned as it was damaged by the corier and he had no lamps left, he said he would sent me a smaller lamp for dd and give me a full refund for the large lamp. Yesterday the lamp arrived so i e-mailed saying thankyou and asked for the refund for the original lamp.
Hes now saying that he can't refund me until i close the dispute , i'm worried if i close the dispute i will not get my refund and then be unable to open the dispute again. Is the seller correct? should i close the dispute?

bump

I would not close the dispute, he needs to refund you first.

I wouldn't close it as it has not been resolved as you have agreed.

Thank you, i have just e-mailed him saying i will not close until i recieve refund. Just took a closer look at his feedback and i'm , he has 99.2% good feedback but has 17 bad feedbacks in the past month, 3 or 4 of them say that they had to go though pay-pal to get their money back, looks like i'm not going to get that refund anytime soon .