EBAY Seller wants Paypal transfer to cancel transaction?

I won an Ebay Auction and immediately wrote the Seller asking if it would be okay to cancel the transaction. (I KNOW I am required to pay for it since I bid I just thought I would inquiree first). He writes back I cancel it if I send $5.00 to his Paypal account through Paypal. Then we can cancel it. Is this the normal protocol? I know the right thing to do is pay for the auction (and I will). But just out of curiousity, what happens if I don't? I have spent thousands and hundreds of transactions the last few months. Would Ebay take action for one $35.00 transaction unpaid? Thanks...