Seller asked me to cancel my order and blocked me after I said might report

Ordered an item on anniversary sale. It's a bit rare and pricey(for what it is) because of that, but sale made it a good deal. 3 days passed and seller contacted me:
"Dear friend, this product is out of stock. Please apply for a refund"
I've bought from this seller before, we all make mistakes and as disappointing as it was I was just going to cancel(I've read the FAQ). But then I saw that an item is still listed. You could still order it, 5 items available, etc. Seller just added a picture on it with a message "Out of stock, please do not purchase".
Which got me thinking that seller had an item, put it on sale by mistake and wanted to wait till the sale is over and not loose the listing with positive feedback or something.

So in frustration I messaged:
Me: I will not cancel my order. You listed it as available at a time of ordering and it is STILL listed. You just posted a picture that said it's out of stock. You either send it or I'll report you as a scammer. (a bit harsh, but I was frustrated)
Seller: *lists previous orders* Was I not good to you before?
Me: You did your job. All I'm asking you is to do the same here.
Seller: My attitude is already very polite, you actually said you wanted to report me
Me: We're not having this conversation. All I wanted to say was said before. Send me my order.
Seller: Don't think about buying from me, I won't sell to you again
Your attitude makes me unwilling to sell to you

And then I was blocked.
Item will auto refund in 6 days. It can be extended. I still want it but I'm aware that it's very unlikely I'll get it at this point. Should I just cancel it or can something be done about sellers behavior? Or actually AITA here?