yes he was probably lying about giving an incorrect address but it doesn't matter. The only reason this situation was resolved was because badbear bailed him out. It is because of BadBear that both parties wil not face a total loss. I don't think it is appropriate for his reputation to be unscathed in this case
But we don't know how redsnow would've acted because of that. He may or may not have returned the funds out of his own pocket. Had he done the same as segvec then yes negative feedback would be justified. It's arguable as to whether his reputation is unscathed. He has a trusted neutral warning and a red from Eal and you and many people will now not trust him, but most of all he's stopped offering the service which was the right thing to do.