There is a very SIMPLE way to avoid all of this hassle with overseas OR UK based Paypal "NEVER keep any money in paypal for longer than a few days".
Paypal only refunded the guy because they had access to the sellers funds in paypal. No one worldwide has access to your bank accounts without legal procedure. Here's how it works :
Bank account 1 is "your real long established bank"
Bank account 2 is a "new account set up with NO facilities except DEBIT/TRANSFER" absolutely NO credit whatsoever to be enabled on your Ebay account.
Bank account 3 is "Paypal"
If I "Buy" on ebay I transfer from bank 1 to bank 2, then pay via paypal with my account2 debit card. If I get stiffed the credit card companies are on MY side, much more powerful than playpal (no-ones pal)
If I "Sell" anywhere ebay or other, I accept payment via any channel, BUT transfer out of Paypal straight away to bank 1 (unless you plan to spend within 3 days).
WHY do this ? Because I trust me, me & only me. Things get lost in the post, things get stolen in the post, things get stolen upon receipt, proof of postage means "It's NOT me".
Fraud is widespread & worldwide, TRUST is in short supply & great demand. Paypal look after themselves and ONLY themselves. Bottom line, "If Paypal is always empty, then you won't get stiffed by anyone". NO-ONE will ever gain access to your bank accounts without some serious legal work, no matter what happens.
If all of this sounds clandestine & dodgy, think of it this way, " ONLY innocent people get stiffed ". Fight back against fraud, don't leave them any room to even try, and if they do, it'll be to no avail. Honest people never stiff their buyers/sellers (they screw up but not stiff). A thief will use every method available to get your money. A thief knows possession is 9/10ths of the law in any country. There motto is "I have it now ... come and get it back" They know its costs money to get back what you've lost. The further the problem is away from the the innocent, the less chance you have of winning. I believe in an "open bank account policy ...... steal what you like there is nothing in there"
Later guys, Laz.
PS: you're mad if you don't follow the above, the extra hassle takes about 5mins of time, but offers 100% protection from fraud. Dont take the risk
Each time a good guy gets stiffed its rocks us all