Lost my Australia post, dont know what to do? please help

sold a camera lens, shipped by express platinum with tracking number, it been a week already, the buyer is telling me that the lens has lost by Austrlia post, and i have checked the tracking number online, the buyer has put an enquire, and i am entitled to claim the loss,

 

i just want to know, if we bring this issue to paypal, and buyer will get his money back, i lost my lens, will i have to refund the money?

ie, i got post office receipt and express platinum tracking slip,

 

please help

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