baad return run around

We received an AZ Claim on an order that was delivered on time and shipped through the Amazon system. We won the AZ case, and thought everything was fine. But then the customer started a return of the item they allegedly never reeived. Of course, Amazon instantly refunded the order.

When the return arrived back to us, it was for a totally different item, that probably cost $1 or $2. This was a plastic box cutter knife, not something we even sell.

Once it arrived, it was not the skates that she bought from us, but three small box cutter style knives. This makes no sense, how could she return an item when she says she never received it?

I tried to file a Safe T Claim on the return, since it wasn't what she bought from us. But the Safe T was rejected because Amazon says we can't file a Safe T Claim on an order that has an AZ claim against it. So right now the customer gets a full refund on an item she claims she never received, and she's returned a plastic pastel knive that probably cost her $1 or less.

Amazon then said instead of using a support case, we should file a fraud/abuse claim. So we tried that. But then the fraud/abuse team said that instead of filing with them we should submit an appeal to the AZ department, even though we won the AZ claim. When I go to the AZ claim (which we won), I don't appear to have an option to send more info. It just gives me the ability to grade them on if I agree, strongly agree, etc., on things like how easy was it to file the claim.

So I'm not real sure where I should turn now. Do I need to just accept that my $54.99 item was refunded because the customer returned a cheap plastic box cutter tool?