The whole dispute system is worthless to the site if this is the reputation they intend to hold up. Thankfully I've only had smooth..ish transactions (delays in release) for bank reasons, and have not had to come to a dispute.
Also hurts the escrow part of the site if the value can be altered on such a weak excuse. What is a few hours difference going to make when we are talking net banking. It's never quick in AUS unless you have your bank trust an account which requires authorization, at which point you may as well just do a cash deposit.
GL to the Buyer in at least getting his 12.7 BTC and LB come to their senses and save their rep a little by upping it back to 13.
The story of the sellers account getting hacked, isn't really your problem. You paid and agreed upon an amount, sounds like a contract to me.
Sounds like the seller was just but-hurt about the recent price hike in BTC.