There is a lot that can be said here, I encourage everyone to be as courteous as possible. Those who are not "victims", please avoid cluttering the forum with excess posts that does help bring resolution.
At this point, the best thing to do for everyone involved is to move this to PayPal Resolution rather than assume this will be fixed on the forum. Justin has made it clear that he does not have the money to issue refunds.
I would like to point out that until yesterday, I did not feel cheated. Justin made it clear to me that he would have my items ready before leaving for Alaska. Things have snowballed, and it is unfortunate that extremely poor communication led to this. In my situation, I would be mostly content with the rest of my goods shipped out to me and my $30 refund. At this point, Justin's credibility means very little.
I feel empathy for you and Fred. This situation has gotten out of hand, and you have been thrusted into it all because of Justin's irresponsible actions. Unfortunately, those actions have real consequences. I urge you to communicate with all involved in order to sort out those who have money, goods, and property due.
I feel you are taking this too lightly. Your reputation has been scarred. A good business can turn a bad experience with customers into a positive one if handled correctly -- this is no longer possible. Too date, I feel your poor communication caused things to escalate. A few emails could have prevented most of this. Accepting all these orders and forgetting who purchased what is foolish at best. Expecting people not to become angry when you disappear and get banned from Headfi shows your lack of respect for the circumstances. I urge you to see this through to the end respectfully and seriously. Most of this will be resolved through PayPal; however, you possess other people's property, they have every right to theft has occurred in this situation.
If you are not a "victim" and do not have anything constructive to contribute, please do not post. A cluttered thread will not help resolve this any quicker. "Victims", if you have not created a claim with PayPal, do so immediately.