How to claim for an item that was never sent

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I paid for a laptop through paypal over a week ago. The seller marked the item as sent the same day, but with no tracking details. We had agreed a courier, obviously one that has tracking. The seller eventually admitted that they never sent the item and had just lied to try and get the money. They are refusing to send it unless I resend the money as a transfer between friends without protection. Obviously I refused.
I made a claim through paypal, and copied in the messages where they made it clear they'd lied and weren't sending the item, but paypal does nothing. They just say:
Allow some time for the item to be delivered. Once you've received it, you can close this case.
The only options to change the case are Item received not as described, or I received an empty box. Nothing that gets my money back if the item is never sent.
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@Anonymous_User
You need to wait 7 days from the day you paid for the 'escalate' to a claim option to be available.
Then if you have not received it escalate to a claim.
Advice is voluntary.
Kudos / Solution appreciated.

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@Anonymous_User
Doesn't sound as if you opened a dispute for non receipt of item but another type, but never mind, i'd hate to be accused of reading your post incorrectly again when trying to help you.
Advice is voluntary.
Kudos / Solution appreciated.

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I opened a dispute for non receipt of item. This is the problem, paypal only say :
Allow some time for the item to be delivered. Once you've received it, you can close this case.
An item that is not sent will never be received.
I am asking "How to claim for an item that was never sent" I don't know how to make tis any easier to understand.

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