Yes, it's true that CAG's will help each other out and warn away from trouble and scams. On the other hand, I'd rather not immediately label someone until I've had the chance to check into it. I know what it's like to get rude welcomes in new communities.
But OP, you're fighting an uphill battle. All the newbie stuff we discussed. Saying you sold it already but you still have the auction and you don't know how to use Google Checkout. Overstock also takes Paypal as I've come to find out.
On the positive side, OP did go through Identity verification. Which is providing Overstock with your address, birth date and a credit card. How strictly Overstock follows up on this (checking the address to the credit card, etc) I do not know. But they supposedly verify the card with a $1 charge which is reversed.
But Overstock does not seem to offer any protection. Sorry. This is quoted from the Overstock Auctions User Agreement.
" b. Overstock Third Party Providers
Third Party Providers are individuals or entities who have registered with Overstock and have agreed to become bound by this Agreement and all other Site Policies. With regard to Third Party Providers, Overstock acts only as an interactive computer service which allows sellers to offer and sell items, and buyers to bid for and buy items. In this capacity, Overstock is an internet service provider and Overstock is not involved in any way in the transactions between buyers and sellers. Actual purchase and sale is strictly between the buyer and Third Party Provider. Overstock has no control over the quality, safety, legality, price, payment for or delivery of the items offered for sale by Third Party Providers. Overstock has no control over the accuracy of the descriptions of items offered for sale on the Site by Third Party Providers. Without limiting the foregoing, Overstock does not examine, set the price or prepare the description of any property or service to be offered on the Site by Third Party Providers. Overstock is not an agent or representative of any buyer or seller. "