PayPal as opposed to eBay Claim

Hi all,

 

I sold an item which was listed with a stock image as is quite common in the listing category I sell in. Buyer receives item on Thursday and claims that the label has fading and immediately sends me a refund request saying if he had known the label was faded he would not have bought the item. Of course this is totally reasonable and I would agree with him wholeheartedly, except I dispute that it was and I responded immediately saying we would be happy to resolve this ASAP but could he provide images of all four faces of the item so we can be sure this is the same one we sent to him as we bought 5 of these together and the label's are quite distinctive in that they were bought on vacation in New Zealand. Images would prove straight away that we either sent this item and indeed item label is faded, or that it is not the item we sent. 

 

The buyer never responded and today I find they have opened a PayPal dispute for 'signigantly not as described'. I wonder why they have done this through Paypal as opposed to eBay and also any ideas on how to respond to the PayPal dispute?

 

Any ideas gratefully received.