There is a guy in Colorado Springs doing that too on a Chevy 292 Engine. I was happy to go look at it with the 2nd owner. He denies it completely, but the engine has several distinguishing features; a one off air cleaner, an odd paint color, a hose with a label on it, a specific oil filter, and of course no compression on the #6 cylinder!!! lol
The first ad is still up and the 1st owner even told me the name of the 2nd one, who "didn't buy it on CL" Why deny it (Other than the $200 Markup)?
-Dane
You went through all of that because you are upset about the guy asking $200 more than what another (or even if it's the same engine) sold for??

Who cares?! If you want it, pay the man. If you don't want to pay that for it and he won't take less, don't buy it. But don't make a big deal out of it.
I pick stuff up all the time, no matter what it is as long as I know it is being sold at a price that would leave me room to possibly make some money. I found a rifle stock at a gun shop that the owner had in a bargain bin. He wanted $50 for it but I already knew it sold on forums for $250. I paid him what he was asking for it. He made what he thought was a good profit and I sold it to someone else who wanted it at a price the market would support, and I made a good profit. Then, after telling a friend who had the same stock, he had me sell his and we split the money. He was going to throw it away!
If you purchase something with the intent of re-selling it for a profit, you are taking a risk. You risk the money you invest in the item that it could possibly be worth less than what you are paying for it. Risk can lead to reward otherwise, there would be no reason to risk anything in the first place!
If you get upset about someone making a buck off you, you got a lot more people besides those on CL to worry about.