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furthermore he might have declined and accepted it in a short time, which can send out the decline email but still redeem the gift.
what actually happened to your gift with can be seen in the gift history:
https://steamcommunity.com/my/inventory/ -> "more" in the upper right -> view gift history.
I checked the gift history and it says the gift was redeemed. The person said that the gifted game is not in their inventory or library.
Maybe they have their library filtered so that only installed games are showing?