PayPal needs to do whats right.. Current Situation

[AnthonyThomas]

I sold an item on eBay. I shipped using a printed label from eBays site with address that was provided by the buyer. Item was shipped immediately.

Apparently, the buyer provided a wrong address, (or according to payapl, requested it be returned to sender) causing it to get stuck in transit for a while before being shipped back to me. (1 month later still waiting)

I informed eBay, Paypal and buyer, that if it's returned, I would resend item at buyers expense, but should it be lost or damaged, I don't feel I should be responsible for that.

At this point, I felt like I've done basically everything by the book. Ebay agreed and closed the case in my favor.  However, Paypal has been holding funds due to non delivery. Which in most circumstances would be completely understandable, but now I have serious concerns of scams where buyers intentionally disrupt delivery to make claims resulting in them swapping a piece/part or even the entire item and then still get their money back from paypal, claiming they didnt get it. 

I'm super frustrated by Paypals policy on the matter, but I do understand that's policy and I agreed to these ludicrous terms. That said, is there anything I can do to protect myself? I don't have the item and I don't have the money. Paypal is saying they wont help me the seller who did everything as instructed. Instead, they're withholding based on the buyer, who provided the incorrect shipping information and caused me to take off of work twice to try and resolve.

I don't want the item. I want the money. That's why I sold the item and made sure I followed the instructions correctly. What can I do to get Paypal to do the right thing? The buyer (if they're being honest) needs to get reimbursed and I need to get paid! I can't help but feel as though these are just corrupt business practices on Paypals side.. 

[AnthonyThomas]

Update: 

Shortly after making first post. Item was returned. Tape had been cut open and package retaped closed. They didn't even try to hide the fact it was tampered with..

Usps delivery man showed record on his side of item being at buyers location for nearly a week before the return to sender was requested. 

Sent photos to Paypal. Waiting for their reply.

[AnthonyThomas]

To conclude..  I issued a full refund to the buyer.

Even though I followed all instructions correctly. I shipped immediately , with a printed shipping label provided by eBay, with the address provided by the buyer. According to USPS, the buyer had the item at their location for almost a week. It got stuck in transit due to "changed address or incorrect address" until finally being returned to sender. Once I received the item back, it appeared to be tampered with. I provided photo evidence with the posts man present. I tried to locate and track package over the course of the month, by working with USPS and eBay. Lastly, eBay reviewed all of this and decided the case in my favor.

Despite ALL OF THAT... Paypal sent me an email stating they reviewed and ruled in the buyers favor. 

So... even though I did everything correctly and clearly the buyer didn't, Paypal decided to steal from me. A trash man. who was trying to sell a toy on eBay to pay bills.

This situation is so nutty, I think it's pretty obvious that I'd have a case should I push it.. I'm just disgusted at Paypal