the website is asking you to close the case so they can refund you as the money is withheld in his Paypal account,only by closing the case,the money will be released and the website can refund you. if you have paid with a credit card,you can always file a chargeback if they do not refund you after you close the Paypal dispute. I have run into similar situations on Alibaba site,seller cannot refund as the payment is witheld by Paypal. It is up to you how well you trust the seller.
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