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Paypal refunded my buyer without my permission and buyer never returned item

Valenagray
Contributor

Paypal refunded my buyer without my permission and buyer never returned item

I sold an item on ebay and received payment through paypal on December 01 for $3200 and paypal placed a hold on it. On Dec 06 I sold another item for $4300 and paypal put a hold on that too. On Dec 08 the funds from the dec 06 transaction became available and those funds were transferred to my bank account. On that same day the buyer asked for a refund and I said ok ship the item back and I'll give you a full refund. On December 09 the buyer escalated the dispute to a claim which I thought was odd because I thought we had just agreed on the refund and return. Meanwhile the funds from the Dec 01 transaction were still on hold even though confirmed delivery and feedback were all good. On Dec 12 I received a package in the mail opened it up it was a box within a box and no item. Buyer sent me an empty box. I contacted paypal and told them to stop the refund of $4300 because the buyer has not returned the item. Next day my paypal account is negative $522. Paypal said ebay issued refund, ebay said no they didnt, ebay sent me an email saying they closed the case in favor of seller. Paypal said i needed to file a seller appeal affidavit which i immediately did, meanwhile paypal takes my funds that they have been holding all this time for no reason and is from a totally unrelated transaction! To top it off paypal is telling me that i am not elligable for seller protection!!! Even though on the transaction page it says I am. What can I do to protect my financial position in this matter since Paypal clearly has no interest in facts, communication, or integrity.