A little less anticipation

I got an email last night saying that the seller of the Freestyle Navigator 2.0 watch that I bought on eBay had the watch stolen. He shortly after refunded me through PayPal. Is this some kind of scam? Did he not get as much money as he wanted for it? His record on eBay was clean, so I guess I'll give him the benefit of the doubt. Still, one fewer watch I'll get my grubby mitts on. Maybe it's a blessing, because the auction was for the all black one and I really want the one with some silver in the face.
Freestyle Navigator 2.0 in black and silver below: