Buy It Now and Mutual Cancellation

Had only two left of a particular BIN item. A buyer bought these so the listing ended but the buyer has now emailed me to say they only wanted one and could I refund so they can start again.

Well being the kind considerate seller that I am I've arranged a mutual cancellation, that's not the problem.

What I want to know is will the Ebay system re-instate the item back to being for sale so the buyer can buy his one item and I will still have one to sell or do I have to re-list the items manually which will I assume incur a listing fee. I would like to think that the system will re-instate the item but I've never come across this situation before so am guessing. Does anyone know for sure what will happen?

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