You can’t say ‘buyer asked to cancel’ because they didn’t and ebay will know.
Your best bet is to raise an unpaid item claim (as I see you have already done) and assuming you still get no response or ultimately no money; you won’t end up paying fees.
Unfortunately as with most things ebay, it won’t be a quick resolution.
As I thought, hence why I didn't -should be a cancel option of "Buyer not paid or made satisfactory communication within 48hrs of purchase."
I read that if after 5 days of opening a case still no resolution I can cancel sale without penalty?
Yeah that’s your answer; just wait it out. In the mean time, the buyer can make contact and pay or ask you to change to a cancellation.
Either way you will end up square with regard to fees.
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