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I wanted to post an update....
Gabriel (Sky Diamonds) reached back out to me the same day I posted this thread. He said he had been silent due to personal reasons and he was not purposely ignoring me.
He said he would be happy to accept a full refund, partial refund, and/or pay for the repair.
We came to an agreement of him paying for the repair, in addition to a partial refund. He said this partial refund put him at a loss, but he still was ok with doing it.
Due to this agreement, my local watchmaker being able to fix both watches (the frosted white gold needed a new battery, and the rose gold had the corrosion/rust cleaned up), and the rarity of these watches, I decided to keep them. I also didn't want to go through another round of trying to find these watches again and potentially running into problems with yet another seller or business.
I am currently waiting for the refund, which is being sent via wire. Gabriel said he sent it to his wire department, and it should be on the way shortly. I will update again when I have received the funds.
Gabriel also said he is most likely firing the watchmaker who was responsible for the condition the rose gold watch was sent to me in, in addition to it not being sized as requested.
However, the watchmaker alone doesn't explain why the frosted white gold watch was sent to me with a dead battery and had not been inspected at all before being sent, why I was sent a year old video of a different watch, why the rose gold watch was described as "brand new" when it very clearly was not, and why no one noticed the misalignment of the bezel before boxing up the watch & shipping it out to me. Also, it doesn't explain why Gabriel initially said that a misaligned bezel is normal and happens in 1 out of every 100 AP watches. I don't believe that at all.
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