just a quick point.
as much as there is so much pain and grief, I think the appropriate action is to take it up with PayPal and let them know there is an issue before there is a legal limitation on you being able to retrieve your money. secondly, I'm not entirely sure of immediately posting this on the forums, though it would be wise when the whole event goes to moot and you have to warn others of who the culprit is and to be aware of the situation.
on that note, I think that as much as the comments are made pertaining to your unfortunate circumstance and I am in entire agreement, I think some comments should be mindful for the fear of speculation. we do not know the exact circumstances, nor do we know exactly what is going on so I do not think it is fair for any of us to jump to too far a conclusion just yet.
It's been less than 24 hours or thereabouts and this is no reason just yet to jump to conclusions. again, I sympathise with the OP immensely and I hope that the situation gets sorted for you soon and I hope the seller is able to explain himself.
But I will not speculate as to how the damages is made. All this is only going to make it hard for the seller to appear and even cause the person to disappear or feel extremely apprehensive about the situation and lead to bad blood when there may be a logical explanation though it may seem hard for some of us to believe. But a lot of the things that have happened are not within the control of the seller and buyer and also, we may just be causing more concern to the buyer as well whom I'm sure is extremely worried.
I hope that the right thing will be done here; and OP, I feel for your situation and may I re-iterate that I hope that everything works out for you asap.
Edited by cravenz - 6/1/10 at 7:18am