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.
he said numerous times that the mistake was unintentional when he was asked if he was going to repay out of his own pocket. This leads me to believe that he was not planning on paying out of my own pocket. The situation was resolved quickly enough so that it didn't need to come to that