Wy doesn't PayPal cover for COD returns

Just been scammed by a seller who sent wrong item, i informed them and they instructed me to send back COD. I initially thought that was really good of them.....bad, bad, bad! Seller claims item not a post office, oh, but it is, I checked with their post office, but they are refusing to pick up. So I am out of pocket $100 and no item. This is so unfair, PayPal refused claim, told me to check policy, but be blowed if I can find anything that says not insured for returning COD!!!! Feeling incredibly frustrated and scammed. Don't buy from qandp_variety. Stole my money.

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