I can't see either but I agree with Priscilla. I would take it to LV and see what they can do. Also, you should ask the people at the ebay subforum about what would be the best course to do if you want to cancel the transaction, they always know what to do and are really helpful.
Oooh...sorry the seller did not disclose this (I looked up who you were talking about, btw); too bad she doesn't accept returns . I'm sorry. I *think* this is salvageable (but it may be expensive considering it's a pocket and it's leather). Go to the boutique, and ask for their advice...hopefully, you can get it fixed.
You can certainly file a dispute with eBay/ PayPal as ITEM NOT AS DESCRIBED if seller did not disclose damage in the auction listing. Also call your CC company right away and file a chargeback (if you paid by CC).
Her return policy DOES NOT matter in the eyes of Paypal & Ebay. If you are in any way unhappy immediately file an "Item not described" dispute with paypal. You will get your money refunded minus the shipping costs, and you are responsible for return shipping. Make sure to ship it back with delivery confirmation.
Good luck...and sorry that happened!