I don't think that kinks in a herringbone necklace would qualify for damage in transit, even if she asked you to file a claim. I think the issue is that the buyer cannot wear the necklace because of the kinks. What I suggest is, ask the buyer to return the neckace to you, and you will refund the full purchase amount, plus the return shipping, but also, because it's out of the U.S., ask the buyer to purchase a certificate of mailing, or something like it to prove it was sent, if you do not receive it. Make your offer a matter of record by putting it in the dispute, because ebay/paypal will review your offer as a consideration in their decision. If the buyer does not return the item regarding your offer, paypal might not refund anything to the buyer. If you do get the item back, you can relist it, if you can straighten out the kinks!