Paypal horror story: $7,500 return to scammer lost in mail. What to do next?

It's absolutely a horror story. About three months ago already, I purchased a collectible from a man in the UK for $7,450. When it arrived, I was pretty excited, but then immediately horrified when I saw that he had sent me an absolutely useless item in its place. So, obviously, I immediately took the steps to file a case. I also sent the seller an email. Surprise! No response. [A little later, I also contacted the Northamptonshire police department, who filed a fraud report with Action Fraud on my behalf. Apparently, this same guy had sold this same item 3 other times. A scam running approximately $30,000.] After I escalated the case, PayPal requested that I provide documentation that the item was not as described. I sent in photographs of how the items obviously differed. "Not acceptable evidence." So I had to drive all over the place to find a dealer (there wasn't a local one due to the uncommon nature of the collectible), and then wait for them to draft up a letter--a $30 valuation service. I sent the letter in and finally PayPal allowed me to return the item. Imagine that. I provided documentation that the item I received was worthless, and was required to send it back to the UK for my $7,450 refund. I called PayPal and talked to a representative asking about the best way to ensure I would get my money back and whether or not I would have to insure the item. She assured me that because I provided documentation that the item was valueless, I would not have to insure the item. I went to the post office and sent the package back via registered mail, paying around $30. I updated the case with the proper information on the 9th, and have been checking every single day, awaiting its return. As I was checking, I saw a little note on the claim that said "PayPal will contact you if further information is required by June 17th." I thought this was odd, since that date had already passed (it was around the 20th by then). So I called and was assured that everything would by fine, and that the date would automatically update to around July 7th to be checked for delivery. Today, at 9:37PM, I received an email from PayPal saying that they CLOSED my claim. To me, this seems completely boundless and unreasonable. I called PayPal, unbelievably frustrated and horrified, and was informed that NO MATTER WHAT, UNDER ANY CIRCUMSTANCES WHATSOEVER, INCLUDING IF THE MAIL COURIER TRUCK WERE TO EXPLODE WITH THE RETURN INSIDE, PayPal could not return my payment unless delivery receipt was confirmed. I have filed an inquiry with USPS to track my registered mail. And now I am writing this, because I am at my wit's end. Please, for the love of God, tell me what I did wrong and what I can fix.

Well, I was advised to not get it insured. I thought at the time maybe I should get a name, but I didn't and it's eating me. It was sent with tracking and via registered mail, though, sorry to confuse you about that. PayPal's terms say a signature is required, but my point is what on earth can I do if I did everything correctly on my end and USPS or Royal Mail just **bleep** up. Am I supposed to fly to the UK and hunt down the package myself if the inquiry doesn't find it? That's basically what I was told in short on the phone the other day. The thing is, I could've insured the package for $7,500, but it wasn't intrinsically valuable. That's why they told me not to insure it. USPS requires proof of value anyway, so it wouldn't make sense. But it would've solved an issue if that happened--of course that jerk in the UK would get a free $7,500. It doesn't seem like 'buyer protection' but some ridiculous technicality from PayPal. Like I said, it's so clear that I was scammed, and I proved that with official documentation from a record store. I had family members around when I opened the package even. The representative told me that this only allowed me the right to send it back. Which is just absurd, because it's no different from a return. I called Royal Mail today and spoke to a guy who said he would direct me to the international department, but it turns out they're closed until Monday. He told me it's likely just stuck somewhere. Best case scenario, it's just delayed and will be delivered soon enough to not worry about the chargeback deadline. I guess I should call PayPal and verify that it's alright to do that. And of course, get a name this time. It just got me thinking, what the **bleep** happens if he signs a fake signature or declines to accept the package. Technically then, PayPal wouldn't receive proper delivery confirmation, even though it's so logical. It just seems like PayPal is sticking to its technicalities instead of helping me. Is there any chance there's a way to talk to someone higher up in the chain of command?

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