Thats why you should always use PayPal and PAY WITH A CREDIT CARD.
Ebay and Paypal are loosers when it comes to resolving anything, but contact your credit card company and BAM, the debit Paypal for it now. AND PAYPAL don't like it. I bought a, lets just say an expensive item for a collection I have. I get it, it's fake, I contact seller, he wont refund my money, i contact paypal and *bay and get the run around, I call my cc and bam, disputed charge, money pulled back. Paypal and *bay, one in the same, claim to be unable to work together, seller try's to claim i didn't pay, long story short, my cc comapny is the only one that did not try to screw me on this deal, but the seller and other services sure did. USE a CREDIT CARD, ALWAYS!
Two things you can do:
one turn them in to the IRS for bragging about not paying their taxes.
Go to your county courthouse and file a suit in small claims, our state allows up to $3000 in small claims. Follow through and you will make life miserable for them, 1 they probably won't show up to court, 2 if your state has a cooperative effort with the sellers state, his state will eventually catch up with him; 2a if he ever gets stopped in your state or has a run in with the law, he'll spend the night in jail (LMAO) and have to post bail and pay you back the judgment which is usually the full amount you asked for in small claims since he did not show up in court.
I know, I am a prick, I hate getting taken advantage of, I let it happen enough with out people just outright stealing from me.