It is possible you will end up out of the capital and out of the item. Work it hard and expeditiously as you would have done with eBay. Doesn't hurt to make a phone call to Paypal to verify the details they require, do they have the information you sent and where you are coming from position wise as a seller.
The one true dealing I had with Paypal in a scenario that might be similar to yours is about 20 years ago. Lost $700.00 and the merchandise despite proof of delivery with signature. It was fully insured and because it was signed for at delivery, no recourse through the insurance. Paypal ruled in favor of the buyer and the rest as they say....is history. Only other one was a charge back where obviously a kid used mom/dad's account to buy a video game they wanted...Most parents would not have made the seller of the item suffer for the actions of their kid...but this generation...gesh...over a $10.00 game...let me make the seller pay for it and the charge back fee because my kids out of control...lol Just an assumption on my part BTW on the scenario - just can't see someone randomly buying cheap used video games with someone elses credit card - so many better things to commit fraud on...lol
Wish you mucho success!
Cheers
