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Just to reaffirm the OP here, an empty bottle is fine to ship in the mail. There is no pressure in the tank that would cause it to explode, and what could be left wouldn't be enough for it to really cause any damage to anyone most likely.

That being said he still deserves the refund. While chipped tanks can be repaired (if its just the coating over the CF), unless that is stated you shouldn't be selling it.

Also, tested every 5 years isn't just a paintball thing, pretty sure that's a federal thing for any kind of air tank (just like how fire extinguishers are tested). When they test the tanks, they fill them up to around 20,000 psi if I remember (these tanks only get filled to 4500psi for normal use, and they are relief valves for if they get much higher)

Op if you haven't submitted both a PayPal and eBay dispute, do so immediately. Not matter what else the item you received was not as described which is an eBay policy, I Beleive. Entitling you to a refund. The fact the guy seems to be a douche only helps.

If he said new, and its not, start proceedings through paypal and you will get a refund, although you will have to provide pictures.
I would also inform Ebay that the item was dangerous and maybe they will stop him trying to sell more or re sell that one.

Posting "no refunds" on an ebay auction carries no weight. The buyers have all the power, you could open a dispute for any reason and ebay/paypal would award you the claim.

Definately open a claim. A claim that the tank is new and has any damage to the carbon fiber wrappings would make it a lie. Having owned almost a dozen tanks in my long days of paintball he sold you a beat up used tank that was at the end of its 5 year hydro date and didn't want to try to get it tested. If he is so confident agree that after you ship it back to him postage due, or to a 3rd party tester of his and your mutual choice and he pays for the testing and recertification of the tank you will drop the claim and accept the tank.