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Unable to returned damaged item

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Unable to returned damaged item

I purchased a brand new item that arrived damaged. I decided to keep the item and asked the seller for a partial refund but we couldn’t agree on the quantum so I escalated the issue to PayPal, asking for a partial refund. Now PayPal has asked that I return the item in original condition for a full refund. I’m unable to return the item for various reasons and PayPal won’t give me alternative option. I have a few days to return the item or they’ll close the case. Can someone help?