I agree with Amazon and if that doesn't work, you can go the bluff route. You only think you can't. Put your big girl panties on, take a deep breath, and give her the what for. You can do it. She has been bullying people her whole life, she thinks of herself as a victim and wants to take anyone down with her she can. Don't let her get away with it. You worked hard for the money, she false advertised, tried to weasel her way out of it, then lied and lied again. Tell her you have been in contact with the police dept. Tell her you are going to send a complaint to Craigslist and that you have the document written up to let other Craiglist users know how poorly she does business. Tell her you want a l refund, cash, and she gets the machine back. End of story. Tell her anything that won't get you in trouble, but confront her. You have rights and you are the victim. You need to stand up for you cuz no one else can.
Believe me, you will feel better after all is said and done. Ask me how I know.