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Could there be something on my steam settings apart from putting everything public
So best way I can tell you to avoid those issues, don't enter login information via 3rd party sites, if there a steam login, and you're already login from steam on website earlier it shouldn't be asking you to type in anything.
Another scam is API key, which can be used to redirect all trades which you don't want, so be aware what you're doing, and how it works if you mess with API keys from others, this more meant for web development, or access to account to do things.
That their end, if they pull fast one then nothing can do about it, there really no reason to hand them items, and expect them to hand something back later if they decide to not do anything, or run off, that why beware of scams. Even Steam gives you warning if sending items to them with no trades in return it consider as gifting items to them, means you forfeit your items with nothing in return.
You paid them >
They pay you via some other sources >
You won't get paid unless you buy their skins >
And gives you any run around story why can't proceed.
Pretty much sounds like they gave you run around for your money. Right now they could be counting all those dollar bills buying suckers & laughing it up.
https://help.steampowered.com/en/faqs/view/451E-96B3-D194-50FC