My PayPal was Hacked, over $500 in transactions and no recourse!?

[Zoidbort]

At 521am PST someone logged into my PayPal, changed the main address from my main Hotmail account to my gmail account and then proceeded to buy keys from cdkeys.com!

They made 2 transactions for $253.98!!
This was un-authorized and WAS NOT me so I reached out to PayPal as soon as I woke up and saw the email. 
PP also texted me and asked me if it was authorized, to which I replied with a 2 (not authorized). 
PP just replied back to me and stated this:

"Thank you for reporting this case. After reviewing your case, we found that the reported transactions were not unauthorized and hence couldn't be covered under PayPal Purchase Protection. We've noted the account changes you reported with this case.

We have been unable to provide any refund on the transactions listed."

WHAT!?

How...why not!?
I just told you they were NOT made by me so how can you tell me they were authorized!?

[sharpiemarker]

@Zoidbort 

Contact customer service and have a human review the cases:

Click HELP on top menu, scroll down to click CONTACT US, and then scroll down to click CALL US.

Or private message via social media:

Facebook: https://www.facebook.com/PaypalCanada/

Twitter: @AskPayPalCA

Facebook (US): https://www.facebook.com/paypal

Twitter (US): @AskPayPal 

[Zoidbort]

If I tell my bank, PP, ANYONE with whom I allow access to my banking and CC info it was not me nor did I authorize said transaction then they damn well better accept that and do something about it. 

For PP to not believe me and just cancel the transactions and be done with it is crazy!