So the case of that thing I bought on eBay a few weeks back which the guy never sent has been resolved. Paypal just gave me a refund. I think it came out of the guy's Paypal account or cred card attached to the account so it went smooth. I've no idea what happens when the guy clears out his account first. As soon as a grievance is filed they freeze funds so it's a good practice in that regard.
I'm glad. Paypal is like a necessary evil sometimes but it's nice to know it does what it says it does when things go wrong.