Here is my story (sorry if it is long):
On March 31st I shipped the package to the buyer, after he had paid, using USPS First Class International Mail. After a month, the buyer started a dispute saying that he had still not received the package. I had no proof for this case because USPS does not provide tracking for First Class International Mail, but even registered mail would have not been enough to win a Paypal case, so I lost the case.
I assumed that the package was lost in the mail, but long behold, after another months wait, I received the return package. The buyer had said that if I sent the package, he would gladly refund my $129.99 back. Another Paypal representative has also said that I could appeal at any time that I had proof. Knowing that I had no guaranteed of selling my item again. I sent the item again with USPS Express Mail which had tracking, making sure that I had the address and everything correct. Unfortunately, when I shipped the package, the case had already ended on June 4th. However remembering that I could appeal I any time, I appealed the case.
This is when the trouble began. The buyer responded to my emails saying that he has still not received his item, and soon enough, he stopped responding to the emails all together. I have written several emails and made several phone calls to Paypal because they kept denying my appeal. At first they said that they had no proof of postage, so I faxed that over to them. Then they said that it was past the dead line; however the Paypal appeals agent failed to understand that international shipping takes a very very long time, especially to Vietnam, so I told them that. Then another representative told me that the tracking number does not go to the buyer’s zip code, and thus they cannot refund my money back because of the lack of proof of delivery. However, international tracking number never goes all the way to a zip code because the respective country does not have a postal system like that. The story and reasons for the denial of refund keeps changing.
This means that any buyer at any time could easily state that they “have not received the package”, raise a dispute on Paypal, and win every single time. This sounds like to me a very easy way to scam the seller.
All of this frustrates me. I am currently out $129.99 (that I had paid off due to Paypal’s harassing phone calls), and a PSP. The buyer can easily lie and scam the seller on Paypal, because they hold the seller accountable to provide proof. This is the a huge flaw I see for scams.
UPDATE: Paypal still denies my appeals and does not refund my money because it is after the "timeline". As I have stated, the item did not return to me until after the deadline. Remember, they told me that I could appeal at any time. 
I have sent the FTC a complaint. What else could I do?
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