Please help - how is a FRAUD transaction considered LEGIT?!

[3030nate]

I will try to keep this brief as possible because I REALLY need to know that there is hope for me in this situation, any help the community can give to explain just WTF might be happening would be hugely appreciated.

- Watching tv, minding my own business, receive a mobile notification that $571.80 CAD was paid to a tattoo shop on the other side of the country.

- Rush to my laptop. Change my paypal password IMMEDIATELY.

- Once password is changed, i file an immediate dispute with paypal for this transaction

- Contact the tattoo parlour to warn them to NOT DO ANY WORK because this was a fraud transaction
- Tattoo shop says they had no idea why they were paid that amount, they have no clients esp. not for that amount.

- Tattoo shop says they saw the money appear in their account and is now gone.

- No response from the dispute for days, and upon checking the dispute I notice i get an error when clicking on it. 

- Open up a support ticket to discuss the fact that the dispute has no info on it, and will not appear in my dispute resorts, and gives an error when i click it for info.
- Customer support responds and says the case is open and being investigated and to be patient.
- More days go by, still no response, still getting errors when i click the dispute.

- Bank account finally has the $571.80 CAD taken out of it. Now im freaking out.
- Call PayPal today, the first guy i notice says 'weird it looks like this was already closed, let me pass you to the resolution team'
- As soon as I talk to this guy, im no longer getting errors when i click to view info on the dispute, but the disputed amount still shows as $0 and still does not appear in my dispute reports. 
- Resolution team has me on hold for a bit then comes back to say it is being investigated and I should hear something by the end of the day.
- 6:30pm i get a notification saying the transaction has been found as AUTHORIZED ie NOT FRAUD. HOW!??!?!
- I contact the Tattoo artist. He says no one EVER reached him about the dispute. He says he was not refunded the $571.80, so it is not in his account either.

I am seriously freaking out. I can't afford this much money to just disappear entirely! What do I do? What course of action do I have? I have a text record with the tattoo artist confirming there is no reason i should have paid him and he HAS NOT BILLED any client for that amount of money ever. 

I cant seem to respond to the dispute, i feel completely castrated right now. I have no idea what is happening. How could they rule in favour of a guy with literally NO EVIDENCE that it was a legitimate transaction. I know there's NO EVIDENCE because theres NO WAY I paid a guy on the other side of the country during a global pandemic to give me, a guy with zero tattoos, a tattoo?!?!? 

Pleeease help... 😞