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Paypal is just a payment processor that gives you 'some' buyer and 'some' seller protection.
So disputes for non receipt of item are mostly automated. Seller provides tracking that shows delivery = seller wins.
So then its your turn to do some work to assist Paypal in recovering your purchase price from your seller.
Firstly ring Paypal customer services and tell them that the number is fake or that the item was shown as shipped before you purchased it. With that information they may well just issue you a refund.
Secondly if they don't then... APPEAL
To submit an appeal on the dispute that was closed, PayPal asks that you obtain a detailed report from the shipper/courier (on their letterhead or some other form of official stationary) that includes the address the seller gave them for the shipment. Or one that includes a statement mentioning your address and saying the item was delivered to a different address. THEY DON'T HAVE TO SAY WHICH ADDRESS IT WAS SENT TO, JUST THAT IT WAS NOT DELIVERED TO YOUR ADDRESS.
Check tracking in below link to see where it went.
When you have that, contact PayPal via phone (log on to your account and click contact at the bottom of the page, or via Facebook (send a Private Message to PayPal) or via Twitter (send a Direct Message to @AskPayPal) and say you want to appeal the denial of the dispute based on the shipper saying the item was delivered to a different address. Once it's submitted (you will be provided with directions on how to do that), the dispute will be reviewed further and a determination will be made.
You also have the option to contact your card issuer if you funded your Paypal payment that way and see if they will do a chargeback for you?
I've used PayPal for a long time and always assumed I would have buyer protection if something unlikely happened. The first time (September 2021) I filed a claim, I was denied. I purchased an item online and on what appeared to be a legitimate website that offered purchasing through PayPal. I thought that given they offered PayPal they couldn't be fraudulent since PayPal offers buyer protection. What reason would a scammer have for using a service that protects buyers? Wrong. PayPal facilitated the fraud. I bought the item, never received it, never received tracking from the seller despite repeated attempted contact. I filed a claim. The seller (from China) provided a tracking number for a package that couldn't possibly be mine given a) it came from Stockton, CA (not China) and b) the weight of the package was over 30 pounds (not the 2-3 pounds mine would have been). PayPal denied my claim because some random package with some random tracking number was delivered to some random address in my same city. PayPal didn't give **bleep** despite me providing information confirming this. I wish I had used my credit card, which would have given me far more protection than the fraud facilitators at PayPal. Lesson learned. I will not use PayPal for purchases moving forward. They are not safe and do not give one **bleep** about investigating fraud.