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Buyer protection states item has to be 'significantly' other than as described, you bought a vest and got a vest and the fact it was too small Paypal did not feel was significant, annoying however.
When its happened to me I just re-sold the item myself via Ebay etc.
However it also doesn't stop you taking private legal action against the seller ie small claims court if available in your country OR if you funded your paypal payment via a credit card then ask your card issuer for a chargeback?