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Terminate an account with refund pending

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Terminate an account with refund pending

Attempted to purchase an item from (LEGO Shop) using PayPal on 2nd June 2020
On the 15th June 2020 the seller (LEGO Shop) told me the payment had been declined by Paypal
However on the 18th JULY 2020 Paypal credited the seller with the money that had been declines 6 weeks earlier.
Contacted the seller and refused to accept the item and requested they inform PayPal.
Told PayPal but the refuse to refund me, and cannot justify why they paid the seller more than 6 weeks after it was delined.
On my account PayPal show a Pending transaction for £2018.95 that PayPal declined at the beginning of MARCH 2020.
I now want to terminate my contract with PayPal but fear I will not get my refund.
Any suggestions how I proceed