Buyer asking for compensation after closing as basement flooded

[Himanshu Jain]

Just completed my first flip and sold the house on day one. Now with recent heavy rains the basement got flooded after closing. As per buyer there are signs of flooding before and they claim that I tried to hide that condition, but I never lived in the house and had no idea about any water issues. As part of buyer inspection it was identified that there were some signs of water seeping in and we gave some credit to buyer to fix that issue. Looking for advise on how to respond to this situation.