How can a seller defend his order

[locomotionart]

I recieved an order for a custom layout, i accepted it and right after couple of hours i gave him the sample of what his work gonna look like, he liked it and was good with it.
i submitted the work he asked to change the colors.
after changing the colors, he instantly said i dont like it now.
i did change the whole theme of it to make sure my client is satisfied.
He did liked it and when i delivered his work he asked for cancellation.
and there were my raw files included.

his cancellation statement was “the quality of work is poor” i declined it and applied for my own cancellation stating “the buyer is not providing enough information”

now my questions are

-will it effect my profile ? i know it does, but is it that much of a big deal ? im constantly being panic over it 😕
-what if he uses my layouts in his youtube streams ? because the layout seems perfect and can use it, can i report him for using my work even after cancellation ? its my hardwork of 4 days