Seriously, i think he is mentally ill, psychotic. His behaviour in all that is happening is complete non sense, just crazy. It is even hard to label him incompetent, criminal or a scammer, he just seems insane.
I think you're right. At least he seems to be in denial. If that chat log is real, that is. He seems oblivious to all the pain and suffering he's causing with his gross incompetence and his pathological lying.
I mean: His # 1 worry at the moment is the fact that he's gained a lot of weight recently? That's the message he wanted to convey to the world? He has time to chat merrily about his cat and his own weight problems, while completely ignoring all the angry customers whose lives he has destroyed, many of whom are probably sending him death threats right now? He seems like some kind of autist, at the very least.