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Sounds as if you opened a dispute for unauthorised transaction?
If so that was telling paypal that your paypal account had been hacked and used without your consent to make that transaction.
Paypal would check IP addresses and devices, see you did make the transaction and cancel the dispute.
If you wanted a refund you should have asked the seller, if they refused and the item did not arrive then open a dispute for non receipt of item, IF the item did arrive and was tat (probably would be if you bought from a China website?) then you could have opened a dispute for item received but not as described.
Paypal only gives you some buyer protection so you need to read up on it / risk assess your own transactions and open the correct disputes.