I explained that I sold a website (i know lol) to someone who is now attempting to charge back. Since I was using a Middle man on the rs trading website, after the scam became apparent I was able to retrieve the IP address used by the scammer to access the site. I was also able to resolve the IP address used by the scammer to talk to me through Skype (which, of course, was also the same VPN the scammer used to access paypal and make the fraudulent payment). I gave both IPs to the fraud department of paypal.
I'm guessing the non-vpn IP matched to the legitimate user's IP address and they were able to determine that he quote unquote "was trying to pull the wool over our eyes" & the dispute was settled in my favor. I remember him saying something along the lines of "it's nice to speak to someone that actually knows what an IP address is" haha.
I got an email from the "legit owner" a few hours later asking me what goods he purchased and that the payment was unauthoried, of course, I didn't respond as directed by Paypal customer support. I think by saying it was a website instead of "digital goods" some how helped me, though I'm not sure how exactly.
That's about the best advice you are going to get, I wish you luck bud.
In the future make sure to use payment types that are less vulnerable to charge backs & refunds.
Thank you for the reply. What do you mean by runescape? My balance is showing as negativ.