Reading all these stories explains why sellers do now not accept paypal through credit card, do not ship anywhere anymore and only accept verified addresses - I did not believe it was that bad but what are people up to? Bag and money? Honestly, that is called STEALING, and usually they charge you for it.....
I know someone here in Germany who went to the police after they paid for an item and didn't receive it. Well, the police tracked the lady down (through bank transfer info) as she had given a false address etc. In the end they got their money back - so this is something to look into. I have told buyers/sellers of legal action, and that seems to work - do not just rely on paypal, but I guess internationally it is too difficult to do something....
Sorry to hear of your trouble.