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If you filed a dispute as unauthorized transaction and was denied, because technically no one broke in to your PayPal account to make payment, then you'll need to contact PayPal customer service to change the dispute to Item Not Received.
Response may take longer due to Covid-19 situation.
Please visit this page:
Click MESSAGE CENTER or click LOG IN to access your message center or for live chat where available.
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Thank you for the advice. But the case is resolved and I am not able to change the reason or create a new case for that item.
The message system says an agent will come on the messaging system but they never do.
I do not understand why paypal would continue to send the payment when EBAY confirmed the account was hacked and the order was cancelled.