Seller asking buyer to Close Dispute BEFORE sending refund

[JoSippitts]

I bought two dresses £61 from CHICV. One dress did not arrive and the other was faulty/damaged. After back and forth with the seller, I returned the faulty item (tracked). The seller is telling me (the buyer) that they cannot refund me the full amount until I close the dispute case on PayPal!? Surely I should be receiving a paypal refund before the case can be closed as resolved? Any advice? Thank you.

[sharpiemarker · Accepted solution]

@JoSippitts 

Don't close it! The seller can refund within the dispute but if they ask you to close it dispute to refund you, it means you'll have a hard time to get or not get your refund because you can't reopen the case if they don't refund since you yourself closed it. Seller knows this!

I would escalate to PayPal claim at this point, cutting all communication with them so PayPal can review the case and ask each party for information to assist with this and make a ruling on who gets the money.