Suing PayPal and taking them to Small Claims Court & Filing BBB complaint

[TimePerfected]

I sold a buyer an iPhone 6 on eBay
Buyer opens case saying item not described on eBay
Buyer loses case as eBay determines item was as described.

Buyer then opens a case on PayPal
PayPal had technical issues that prevented me from seeing an open case on my resolution center. PayPal acknowledges that I had the technical issue and fixed the issue at the point it was too late.
Since I couldn't see or respond to the case, case automatically closed in buyer's favor. Buyer automatically gets to return the item.
Buyer returned a completely different phone than the one I sold him. He sent me back a broken phone with a different color.

Despite all this PayPal gave the buyer a refund, I now don't have my phone or my money.

I sent all this proof to PayPal and yet they go against me and gave the buyer a refund. I never had a case opened against me before. This is my first dispute ever and PayPal's technical issue and failure caused a mess. PayPal isn't owning up to their mess about the technical issues!

I'm filing in Claims Court (I'm from NYC so we are allowed to sue PayPal here)
Filing a Complaint with the BBB.

Anthing else I should do?

[TatsuyaHiroki]

Hate to break this to you but BBB is a joke what comes about business rating and solving customer problems

A business rating site that literally lets businesses bribe their way to a good review in itself is not something that i would ever take seriously nor anybody else should.

[TimePerfected]

Glad to say PayPal has owned up to their techincal issues and have given me a full credit.  Thanks PayPal, trust restored! 

[Macuku]

How could you do it?