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It's how PayPal resolves SNAD claims. Return for a refund. In the dispute, they can't force sellers to provide return shipping or refund more than what you paid.
Register for PayPal return shipping refund for future purchases if this return is not eligible:
https://www.paypal.com/webapps/mpp/refunded-returns
If you do not like the decision, forfeit the PayPal dispute altogether and invoke your cc chargeback rights and resolve it exclusively with your cc issuer. Sellers are not covered for SNADs and get charged a chargeback fee.