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I have the same problem. PayPal sent me an email yesterday and closed my case...DENIED. Chinese FAKE seller. They ran an ad using Bestbuy website selling knock off Apple IPods. I bought one because I am a Bestbuy customer. The advertisement was for a pair of Apple iPods selling @ $89 for just one day. It took shipment three weeks, of which I refused. Bestbuy ships within a couple of days. Then, I tried to contact the Chinese but there wasn’t any email address. And, the website disappeared!
So now, PayPal says they support the Chinese. What’s up with that? WTF?
I’m going to pursue this under handed operation until I get my money back.
If you paid using card go through the card company, I had to do this a few times myself because paypal refused to deal with an issue.
I had made the major mistake of using my paypal credit and lost, but do appeal against is and used the financial ombudsman as leverage as you write a formal complaint giving 28 day for a resolution before you escalate the issue to the financial ombudsman.
Make sure you keep every message logged and saved for evidence.