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PayPal does not provide warranties or guarantees. It all depends on how the buyer makes or words their grievance in the dispute. For example, if buyer said in the dispute that they have used the item and it no longer works, then PayPal may not rule in their favor. You can say that they received the item on such and such date but didn't complain of any problem right away or relatively soon after.
If you are forced to accept a return, perhaps use the warranty to replace or repair it and resell. You have original receipt for the item don't you?
Visit this page, select buyer's country and go to the PayPal User Agreement to access the Buyer Protection Program terms for Significantly Not As Described as they will apply to you as a seller:
Note that if the buyer loses PayPal dispute, they can invoke their bank reversal or card chargeback rights.