"Wow, I never knew paypal would just leave you hanging after winning a settlement."
I've had 2 cases go to paypal arbitration on eBay purchases (not reps).
In The first case Paypal ruled in my favor, however since the seller had no funds remaining in their paypal account they did not reimberse my payment.
The second case was when I made a foolish purchase of a used laptop (~$300). The laptop came DOA. Paypal uses the DOA situation as an example how it's "buyer protection policy" will protect a buyer. They ruled against me without further explanation. All subsequent emails from paypal stated that their descision was binding and not reversible. I hate paypal with a passion, unfortunately there is not a better alternative for online payments that I am aware of. On the bright side I'm spending a lot less money on eBay.