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@jimbojones99 wrote:
 I always post to the address in the "view order details" as I believed that was the correct procedure.

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That is the correct prcedure, I think there has been some confusion over what you meant when you said you posted to the address provided by eBay (eBay send a "Your item sold" email if the notifications are set up that way, and it will contain the buyers primary registered address, but people will often change it during checkout).

Once a buyer has completed checkout, the eBay order details will update to whatever address was used during checkout, and match the address on the PayPal notification, so if you used the order details after the buyer paid (i.e. the address is exactly the same on the PayPal notification) you did the right thing, and if the buyer realised they provided you with an incorrect address but claimed anyway, they did the wrong thing.

PayPal would have granted the refund to the buyer if you didn't prove postage to the address the buyer provided, but you may be able to appeal the decision on the basis the buyer provided an address where they couldn't receive the item, and if that fails, try making a complaint to the financial ombudsman.