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If they sent the money and choose "Friends and Family" and this was for something you were selling - then yes, you can be scammed as you have no proof that you sold something. It's not unusual - seems people who are into taking advantage of other people are quite familiar with PayPal's policies. Too bad they can't put their knowledge to doing something good.
A friends / family (or gift payment) is intended as a transfer of funds from family or friends to one another. For this reason, there is no processing fee when payment is made with bank or PayPal balance.
However as it is a “gift” payment, there is also no Buyer protection as no goods or services should have been exchanged.
If he was not a close mate or family member you should never use that option as it enables the seller to evade his paypal fees and negates your buyer protection at the same time. That is also why you would be unable to open a dispute apart from an unauthorised transaction (if your account was hacked and used without your consent).
You also risk having your account limited for using this option when you are purchasing goods as its against Paypal rules.
Your only hope is if you funded your paypal payment via a credit card then contact your card issuer and see if they will help you but unfortunately again as it was a 'gift' of money they may decline as well.