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I have a very similar experience with Paypal (Sweden).
Ordered an item and payed. The item has not been delivered, its been sent to the wrong country at first, then the company claims they did send it again, now to the correct country but wrong adress.. So still won't be able to get it.
Filed a dispute, but Paypal took the sellers side. I don't even think they bothered to read the info I sent them. They're siding with the offender.
Yes it will help others stay away from this company.
Also, its impossible to reach Paypal, no answers on phone, e-mail or their own message system.