Returned item to seller, Case was closed, no refund
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As per title.
Was asked to return item to seller. Gave the tracking number to PayPal as requested within the timeframe. Returned the item with Proof of Delivery, got all the thank you messages for providing the information to PayPal and than....
06-09 Case was closed because
"We didn’t receive return shipment tracking information verifying you had returned the item to the seller. Because we did not hear from you before the deadline provided, your case has been closed."
The tracking information clearly shows that the item was returned sucesfully and proof of delivery is clearly visible.
So how did that happened? Now I am out of money and lost the item. Can anyone help me to sort this all out?
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No one here can tell you why. You will need to contact PayPal customer service for that and to appeal the decision.
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You could start with a phone call to PayPal customer service. Click on contact at the bottom of the page.

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