Give him hell! I have no remorse for sellers that engage in this kind of behavior. The ecommerce "tradition" these days is for the seller to only act after they have been paid in full. This means that there is plenty of inherent seller protection (they are sure they have their money) and little inherent buyer protection (only word of mouth, or arbitration which PayPay and Ebay are really really lousy at). Considering that, as soon as a seller starts acting suspiciously I don't hesitate to act swiftly and decisively, either with direct contact or by starting the dispute resolution process provided by the mediator (the bank, PayPal, whomever).
Now, whether or not Tom's should be a consumer affairs type site in addition to everything they report on (see: Scope Creep) is still up in the air. With that said, I think what they did was 100% right, shady sellers should get NO sanctuary, not even for a minute.