Buyer Opened Dispute - Have Delivery Confirmation

[geaux11]

I shipped an item last week via USPS and had delivery confirmation. The item was confirmed delivered 2 days after shipping which prompted me to ask the buyer if he enjoyed the item - he did not respond for 2 days; when he did he claims he "never received the item."

He has now opened a dispute and PayPal put a hold on that money (which I've already spent; therefore, I have a negative balance in my account).

Should I just take this dispute to a claim - I have all the information regarding the delivery confirmation - I want that money back and I did everything on my part. I want this to be over with and the only way I see this happening is for me to escalate it to a claim - please help.

[redpower]

How much was the item? If it was over $250 you need signature confirmation to be covered.

[geaux11]

Seriously? It was $370. Will I be covered up to $250?

Also, the buyer sent me an e-mail saying "i think the item was stolen." How is this my problem?

[redpower]

Unfortunately if a item is over $250, for it to be covered at all, it needs signature upon deliver as confirmation. There's still a chance you could win, but most likely not