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Believe it or not, this happens very often. You might want to check outhttp://paypalsucks.com to read up on stories just like yours. You'll find, that people have lost thousands, literally, and PayPal has done nothing. Same with eBay, it's just a risk that you will have to take.
I also, had a previous problem with eBay, and lost a lot of money. The only thing that eBay did, was ban the user from eBay. Which, in my mind, was not enough. I never got my money back, and probably never will. This is why, you must be coutious(spelled wrong, sorry!) when bidding on eBay, and using Paypal.
One thing to look at is the user's feedback. You want them to have a feedback of 15 or more.
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