Not true at all. If you file a claim you have to provide supporting evidence. Paypal will award someone a winner for lack of a better term. If the buyer won the claim at that point he would be required to ship it back and provide shipping/tracking details to Paypal and he would get his money back.
You can't win the claim if you have the goods and haven't returned them which is what the vendor would request. If he doesn't repond at all, perhaps but good luck with that.
So everybody got their stuff sorted as usual. A month is not ridiculous for a far east exchange and return shipping is part of almost every warranty claim. Lendmeurears has been one of the better suppliers to the community. If they aren't good enough or you lack patience, buy local and call it a day.