You really should have done that immediately upon hearing it was cashed, definitely upon receiving the check images. Time is not on your side AIUI, and it's already such a small sum.
Fucking paypal.
I will try to report it to the local police as well, I suppose. I will stop by later today.
[1] Immediately, meaning immediately upon learning of the fraud, which, thanks to PayPal's negligence and incompetence, was about 4 weeks after the fraud actually occurred.
It demonstrates a willingness on your part to expose yourself to local law enforcement.
Having not done that, it implies you're possibly in on the fraud, and just shaking a money tree opportunistically to see if you can double your money. PayPal doesn't know you're not the person who cashed the check using a fake identity, or co-conspirator.
Involving the police doesn't guarantee a better outcome, but it improves the odds in my experience.
You really should have contacted them the moment you were informed of the fraud IMHO.