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@cq_tech wrote:

Paypal have quite clearly breached their own terms and conditions in this case, so rather than continuing to bash your head against the corporate brick wall, go straight to https://forms.fos.org.au/OnlineDispute and lodge an on-line dispute with the FOS, explaining everything you've stated in here, and I'll virtually guarantee that Paypal will refund all of your money (plus an apology).

I'd personally be inclined to speak one last time with a Paypal CS rep and tell them exactly what you're doing, as it's quite possible they'll back down and pay up once you've made it quite clear that you intend carrying out your threat, but if they still refuse, go ahead and lodge your complaint, and if the FOS find Paypal to have erred in their decision (which they clearly have), not only will the FOS instruct Paypal to refund you immediately, they will also levy a fairly substantial fine on Paypal as well - something in the order of a couple of thousand dollars or more, so it's definitely in Paypal's best interest for them to accede to your request, before it costs them 100s of $$$s more than it needs to. BTW, do so via phone, and definitely NOT email as these are routinely ignored.

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It looks like the buyer opened the case with eBay not Paypal. Is it still possible to involve the FOS?