The bot wasn't helpful but the customer support rep, Nandhini, was able to provide an explanation:
"Upon reviewing your account I see that the dispute was filed and PayPal has given you the courtesy credit. However, since the dispute was not escalated to claim from the negotiation phase it has been closed in seller favor. Negotiation phase which means that we will give 20 days time for you and the seller to discuss and come to a conclusion. If the resolution cannot be met you can escalate the case to claim so that PayPal will investigate further in order to help you with a dispute. "
Well, that's misleading to refund me and put "Won" on the claim status immediately if it was only in Negotiation phase.
Solution: "Since the case is not escalated, case has been auto closed and once the case is closed we will not be able to reopen it.
In this case, I would reach out to your bank and file a chargeback. They will be able to help you further. When a bank initiates the chargeback, they will get in touch with us (PayPal) to collect details about the transaction, and we will work closely with the bank to check on the matter and indirectly assist you. "
