NOW TO DEFEND MY NAME!
... Or what's left of it.....
Anyhow, he's lying. He put the trade up and being the quick buyer I got the item. Later, when I went to sell the item in teamspeak, he was there. I apologized and offered to give it back for a small safety bonus but he said it was fine. As to the whereabouts of the sword, a chaos guy has it... I also already spent the gold on booze.