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Paypal's operating rules may have changed, but I've similarly been bitten by money lost due to Paypal.

Here's how the scam works: someone buys something from you on eBay, pays you via Paypal. You diligently send off the good, and delivery confirmation shows it was received. The buyer waits till the last day possible to report the item as not received, Paypal puts your account in the red and you're stuck with the bill.

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You provide the tracking number of the shipment and you automatically get the money back. You don't even have to prove anything. Tracking number showing you shipped any package to the buyer's listed address is all you need to be covered by the Seller Protection Policy. If you actually sent them an empty box, they'll have to sue, because PayPal will let you keep that money.

I bought a stolen laptop off ebay. Told paypal it was stolen and they gave me all the money back, just told me to keep the paperwork from sending it back to the owner incase the seller decided to object. I never heard from the seller.

So, did you find the original owner?

yeah, very easily. I sent the laptop back to him.

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