This is how Paypal should, and usually does, work.

The seller being suspended on it's own would not have had any impact on the Paypal decision, usualy ebay do not give any reason, but if they stated the seller was suspended for selling forgeries then that would count in a big way.

I made the point because some posters offer the advice that a Paypal case will allways be won if the seller is suspended and that just isn't so.