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You can right-click the game, and delete local content to get rid of it... if this is the case.
If you do believe it was an actual purchase - then it should appear under your top-right Account > Account Details > Game Licenses/Transactions and say it's already been purchased when visiting the steam store page of the game.
You no longer own ARMA3 as per your online library
This means that Steam revoked the game
Generally this is because whoever you traded it for, scammed you.
Thing is as soon as the CD key is redeemed its steams/valves responsibility.
Per the SSA you're not even allowed to be buying keys like that. I'd go back to wherever you bought it from and ask for a refund.
Without knowing where he bought it from, you can't say he isn't allowed to be buying keys. You can buy the game from the makers web page www.arm3.com and all they will give you is a key that you put into Steam. If he bought it from 'www.cheapkeys4freegames.net.com.org' then fair enough who knows what has happened with the key.
What 'online' retailer was it.
Note 'shady cd key shops' don't count
However at this moment in time the key is valid, has been assigned to my account, only when entered into steams "activate product" it states the key is already in use (as it was on mine).
Thing is I thought if someone wanted to steal the key they would have to steal the whole account?
I've got a feeling it may simply be "wrong region" which may explain why it would get revoked -_-
WHERE did you buy it.
Because if the key was revoked, maybe you should be screaming at the place you bought it from. Not Steam.
The key isn't Valve's responsibility. You bought it off some third party site, these sites are shady and are not to be trusted at all. I would never buy off them. If they scam you or take the key back there's nothing you can do.
Will contact online retailer, thanks anyway guys
Next time purchase only from reputable steam resellers