My first dispute denied. Merchant shows as refunded but has not. I'm so lost.

[shazelbert]

Hello, 

Thank you for being here. First time poster

I have a situation with a merchant that i don't know what to do about it or how to ask for proper help.
Roughly a month ago i bought some gaming points cards from a website called offgamers and a sister website of offgamers. All went well.
1-2 days ago,  i tried to purchase some more gaming points from the sister site but they didn't have enough stock or something not really sure, i'm also new to purchasing gift cards online. Anyways  they refunded me via paypal. All good.
So i went to check out the refund in my paypal and the sister site refunded me just as promised.
But i see a charge from offgamers for $140!!??.  I'm fairly certain i didn't initiate a transaction with offgamers,just the sister site, i could be wrong but to be fair, it was late. That was a big red flag to me  so i checked my offgamers account and they gave me no gaming cards, no credits no codes or points. It just showed i payed them $140 for a bunch of cards that weren't in my wallet or whatever its called. After protesting to offgamers, they sent me a generic message saying were authorizing or reviewing transaction etc etc give us time. I couldn't reach a human by phone and they have a very sketchy phone number that goes to what sounds like an older school answering machine and didnt really instruct me on what to leave in the message. Being so sketchy i was afraid to leave any info on that machine.I Called many more times to no avail nobody ever answers.
Via this archaic message board thing at offgamers, I asked for my money back since i obviously didnt get anything in return. No reply.
So I filed a dispute with Paypal as unauthorized, basically saying these people took my money and wont give it back and i dont recall buying from there.
Paypal denied me, saying something to the effect that since ive purchased from offgamers before, that it cant be fraud. I really didnt understand. I didnt get anything or even remember initiating anything with them specifically.
So later on i check back with offgamers and my account there shows that they have refunded me about $140 to my paypal, though its not in my paypal.
Side note: One scary thing is that either paypal or offgamers or both im not sure brought up my home address in some regards to this dispute. I really didnt know how to take the info they were giving me, the fact that they had or i gave someone my home address. I didnt think it was a big deal to give my address out but somehow i felt it was being used againts me, like a mobster would, i dont know.
So here i am, offgamers now says they refunded me to paypal with nothing in my paypal account to show for it, just a screenshot that shows they sent me the money back minus $5 for some "transaction fee" and i have a denied claim from Paypal to get my money back.
Paypal denied me really fast too like less than a day, which really hurt after all these years with them and a large paypal credit account with them, I feel like they didnt have my back, especially since i dont think ive ever had 1 single paypal dispute, only ebay.
My questions are:
--Is it possible that since offgamers has my home address that they can suck money out of my paypal without me even initiating it? Like maybe they tricked me into doing monthly billing or something and its now reoccurring and they now have access to my paypal?
--I changed my paypal password, is there more i should do to secure myself?
--What do i do next with paypal? How do i request my money back or move forward? I'm out $140.  The merchant says they sent the money back to my paypal but its not there. 

I'm really concerned about all of this. Please someone give me some advice moving forward.