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I think you should contact Ebay and PayPal for getting help resolving this. They should both be interested in having you satisfied. It's like with VISA and other cards; the cardholder can't possible be accused for fraud if the card is stolen - then nobody would use the cards. If this story is true and you get out off itloosing money - who will ever use Ebay and PayPal? And don't Ebay have an insurance against frauds?
I really hope things get sorted out.
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unicorn
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