I bought an item on ebay, sent it back, paypal sides with the seller

[RobertMM]

I bought an item from a seller in India.

I did not like the item, asked for a return, the seller accepted so I sent the item back with tracking numbers, etc.

Upon receipt the seller opened a dispute, claiming the item was damaged.

Because ebay Germany took forever and they have not given any updates, I opened a dispute on paypal.

Paypal asked me to have the item analyzed by some expert, but I have already sent the item back and the seller accepted and received it.

Because I could not provide the requested documents, paypal sided with the seller!

I phoned in, asked to have the case reopened, uploaded some documents, my case got closed again with no explanation on the ruling.

What to do next? 

Now I'm out 1500$ and I'm not even entitled to receive the "damaged" item I returned. The item was a ring with stone and the claimed damage is that one stone fell out of the socket.
Not to mention that the ebay customer care claimed I was winning, I was just about to receive my funds back, they just forgot to send any meaningful updates.

I'm willing to give paypal another chance but I'm slowly running out of time.

[kernowlass]

@RobertMM 

If you had opened an Ebay dispute then you should have waited until their investigation had finished.

Ebay and Paypal have 2 totally different dispute policies as they are 2 totally different and separate companies.

So when you open a dispute for item received but not as described on PAYPAL then paypal would need some sort of proof BEFORE they found in your favour. Then they would tell you to return it trackable and give them the tracking number. However you could not supply that proof as you had already returned the item. 

[RobertMM]

Ok, so to sum it up.

I buy an item on ebay, send it back, the seller acts like a jerk, tries to scam me.

I open a dispute on paypal which closes my dispute on ebay automatically.

Paypal asks me for a proof I do not need to give as the seller ACCEPTED to have the item sent back.

Now paypal sides with the seller and I'm out of money and the item.

And this is OK?

How is paypal still allowed to operate in the EU?

I think scammers all around the world figured out this loophole.

I will try to solve this amiably if there is a way, otherwise I will go out of my way to have PP fined along with ebay.

This is practically theft.

[kernowlass]

@RobertMM 

Yes its ok because you should have waited for the ebay dispute to finish.

Paypal are not interested in anything that is said on an Ebay dispute as it has nothing to do with them.

They are only interested from the time you open a paypal dispute.

The seller agreed to accept a return on Ebay and not Paypal.

Never close an Ebay dispute and only resort to paypal if an Ebay one fails.