Seller won't give me a refund after paypal dispute

[pico-digi-kingdom]

I'm having a bit of trouble with a seller and i'm looking for some advice and answers. 

I bought a mobile phone and recieved the wrong. I returned it for a refund. The seller has messaged me saying they have received it but can't refund my item as they do not know their paypal credentials. 

This was a message sent on the 8/12/14 "Sorry for cos my boss baby Ill, he has been in the hospital a few days ago didn't come back. I just a stuff, could not open the account. Hope you kindly understand. And please dont worry we promise will refund to you when he come back." and on the 9/12/14 i received this message, "We promise will refund to you. Cos you open a case on paypal before, so this money be freeze, we need to call paypal to refund to you. And now they are off work, we need wait to tomorrow. Hope you dont mind this. Hope hear from you soon and we can help you solve the problem friendly and quickly." 

It has been well and truly over a month. Are these excuses legitimate or have i been scammed? I opened a dispute with PayPal and i'm not sure on were to go from there. 

If someone could help me that would be very much appreciated

Thank you!