Injun,
Whether he spent the money or not is not your concern, or anyone elses who sent him their hard earned money in good faith.
He did not fulfill his end of the contract in a timely and satisfactory manner, and you want your money refunded. He is not only morally liable to return all money requested, he is legally obligated to do so.
He owes everyone their money, and must pay them back, whatever the personal consequences are to his private finances, period. He can take out a small loan, run up his credit cards, sell something, do whatever he has to do to come up with the money, thats just life, and it's not anyone elses concern or bother how he does that.
Besides, a reputable company will cancel your order and return your money to you for no reason whatsoever, you don't need a reason to cancel an order. Sometimes people overspend their money, forgeting to include an expense or two, leading them to think they have more money avialable in their account(s) than they actually have. In such cases, sometimes, they need to cancel an order they placed, in order not to get into some sort of overdraft situation. You don't have to explain that to the companies you do business with, all you have to do is cancel your order, and request a refund, it's just that simple.
Sincerely,
ElvinWarrior... aka... David, "EW"