Paypal dispute, seller offering return for refund but shipping address is not real what do I do?

[thehashmash]

I disputed a case where a seller incorrectly sent me an item, upon them seeing the dispute they offered a refund but I need to send the item to an address that doesn't even exist! What should I do? I can't deny the refund offer and sending to the address will yeild nothing, but if I don't respond then the case will just be canceled. Please help

[kernowlass]

@thehashmash 

Have you escalated the dispute to a claim?