Personally I would write a letter (and make copies keeping one for your own records and any future correspondence) explain the whole process from your side. Explain how you have tried to resolve the issue ,who you have spoke to etc and have tried everything you can to solve the issue and that this letter is your final attempt to fix matters. Send the letter to your bank , Mastercard, Ebay and PayPal offices and if they all ignore it then, well forget it really. The system is at fault by the looks of it and as long as you have the letter and have sent it to all concerned you have evidence right there to prove you did all you could, notified all parties by letter and it was left in their hands. It shows you were honest and not to blame and enjoy your purchase , you haven't done anything wrong as far as it sounds. I hope this helps ease your mind, these systems are not perfect and it seems you have inadvertently found a system bug! Cover yourself by having a document to prove what you have done , I.e. the letter to all parties. I can't see what else ,really, you can do. Good luck! P.s. Just to be on the safe side I would also put aside the money you would have paid for the watch, perhaps transfer the amount to the Mastercard if it won't be eaten away by interest payments, basically keep the money ready in case you get a demand from one of the parties involved at a later date, you don't want to spend it and suddenly have to come up with it again after all.
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