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Lost in the Mail

I sold an item and it was lost in the mail. It's been 6 weeks and the tracking says it's in transit. My buyer has opened a case with Paypal and refuses to communicate with me. Do  I need to have Ebay step in and refund them? Can i open my own case and get it resolved? I would just like to refund them and be done with it but Paypal won't let me do that. They say it's being reviewed.

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