@singhen
I understand and feel your frustration, my friend, you and I are not the only ones that were scammed. Unfortunately, these types of scams have been going in the past, and they will continue, I am afraid. Others who responded to my post are correct, PayPal unfortunately can't manage and resolve all these scams, they can do their best to resolve the issues with what they have.
I would recommend to you, if you haven't done this already, is to call them directly and get your voice heard. Not sure if you will get your refund back, but at least you make some noise and hopefully PayPal hears you. I myself on Monday morning will start calling them to get my case re-opened and reviewed, maybe I will get some of my money back.
PayPal needs to find a better way to handle escalations, without automating the process, as the evidence points to their automation not working as it should. Simply closing down cases without a way to discuss them further, is not a good customer support experience. At the very least give the user a second chance, where if you do follow the required action, then the case is closed. They should not just say "Pay X more money to get your refund" and then when you challenge that decision they say "Sorry, case closed because you decided to stand your ground".
Let us know how your case progresses if you decide to call PayPal phone line, I too will provide an update.
