I agree that the item is cursed, and you don't want it back.
Your buyer doesn't have a history of leaving that type of feedback for other sellers. It looks like a one-off deal.
My best guess is that they don't want the item, for whatever reason. Either they misread the description and thought they were getting something different, or they don't really need a camcorder and didn't realize it until after they placed the order.
But, instead of having to ask you for a refund and then ship the item back to you and lose return postage and who knows what else, they decided that, since they sell stuff on eBay anyway, they would just try to resell it and get most or all of their money back. But since they don't want to put that much effort into it, they just thieved your picture / description, probably figuring that you're not going to use it anyway.
I would bet double or nothing that English is not their primary language. It seems likely that they feel partially responsible for the mix up.
I seem to vaguely recall that the boilerplate email that eBay sends with "Second Chance Offers" is very strange - bordering on outright hostility. eBay had many problems in the past with people sending fake Second Chance Offers to underbidders (this is the primary reason why 3rd parties can't see the actual names of the underbidders). So "Second Chance Offer" has been treated as a red-headed stepchild by eBay. eBay emails related to Second Chance Offers read like they were written by a committee - half the members of which want to congratulate the buyer and seller for taking advantage of this wonderful opportunity, and the other half who view the parties in a Second Chance Offer as potentially a bunch of thieving crooks who would slit their Grandmother's throat for a dime.
COMC: Thousands of prices have recently been slashed! Auto accept is currently at 35% off asking price for a limited time.