Paypal didn't recognize a scam

[Grantsdad]

I recently sold an item on the website grailed.com. It's an authorised Paypal merchant site. I provided all the shipping and tracking information to paypal for the buyer. I received the money. Later, the buyer opened a case saying they did not receive the items. Because I provided all the shipping information and Paypal confirmed that, I was protected, and they did not remove the money from me. Recently, Paypal send me an email saying the buyers financial inst. decided in the buyers favor. My question is, how is this possible? It clearly seems like a scam. 

What happened here?

[kernowlass]

@Grantsdad

A buyer can file a dispute on paypal for item received but not as described and paypal decide the outcome of those disputes.

However if the buyer funded their paypal payment via a credit card then they can go directly to their card issuer and initiate a chargeback and in that scenario the card company and not paypal make the final decision.

HOWEVER if you met ALL the requirements of seller protection you should not lose out either and should be reimbursed by paypal. If you have not been then your best bet is to go and read up on seller protection and see why you missed out. If you think you did meet all their requirements then give c.s a call and query it.