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I have the same problem!!
At first time I also losed my dispute because I hadn't link the item he sent me with the item I ordered and he sent the tracking number... so I opened a second dispute on November and finally I won it and I will have a full refund!
Thanks to PayPal staff!
I am dealing with the same issue right now. Ordered a trash can and they sent trash bags. I go the same response from PayPal and need to ship mine back before 11:30 on 12/24. Got the note on 12/23. I see others went through their bank. I may try that as well. PayPal has not been useful and I am beginning to question the value in using them.
Same! I filed a dispute and was asked to pay return shipping for those small flimsy trash bags instead of my trash can I had ordered. I filled a complaint with ICCC and uploaded that document to paypal and the case was closed finally and in my favor.