Wrong item sent; I returned it as seller instructed, but have not received replacement/refund

[darkdragonempress]

Hi all,

        Near the end of April I bought an iPad Mini case and cover and the parcel arrived on about the 6th of May, but the case was the wrong colour. I contacted them and they told me to put it back in the envelope, change the address on the back and then write RTS on the envelope and drop it in one of those red post boxes, which I did. Several weeks later I had heard nothing so I contacted them again and asked where it was, and they said "We don't know why it hasn't arrived, but if it does, we'll send you a new one" or something to that effect.

On May 31st I had still not heard from the seller or got my replacement, so I opened a dispute, and on June 5th I escalated it to a claim. However, now PayPal is telling me that I need to return the item or they won't give me a refund, but I have ALREADY returned it, following the instructions given to me in an email from the seller.

Is there anything else I can do? If the seller has screwed up their return instructions, I don't see why I should be the one who ends up out of pocket.