I sold this buyer a brand new shrink wrapped DVD, packaged it carefully with bubble wrap and buyer received it 1 week after shipping.

On that same day, buyer sends 3 photos claiming that the disc fell out of its spot and that there were scratches on the disc. She then asks for a new disc OR a refund even after admitting she never even tested out the disc.

I find it hard to believe that a brand new shrink wrapped DVD disc is heavily scratched up. Either the manufacturer screwed up production OR most likely the buyer opened the package, deliberately scratched up the disc and take photos so she can go refund fishing.

Congratulations on your $10 refund
Michelle Scott. But your reputation fell to the ground. Go pick up the pieces. Hope that $10 was worth it.
If $10 is so important to you, maybe you should be a pole dancer, cosplay slut or a YouTube star and make money the legal way instead of screwing over 3rd party sellers.