Somebody hacked our account once, and was selling 22" rims from the UK. Just keep hounding eBay and make sure they refund the listing fees. We had a huge bill from eBay for listing fees.
I'm willing to bet either you or your wife inadvertently provided your username and password via a fraudulent email....it looks EXACTLY like a legit email from eBay, but instead, if you enter your password/login, it forwards it to the people hacking the account.
It took a LOOOOONG time to get our crap all resolved, but it did get taken care of. DONT stop hounding eBay until you are happy and back to where you where BEFORE this happened.