I do not understand what you did OP !
you were let your $2300 goes that easy? merely sent the bag back without concern?
I do not hear the whole story here !
I agree...this is very odd. It didn't sound like she won the case and paypal told her to send the bag back. It looks like the case was still undecided and she decided to send the bag back. I don't know why paypal would tell someone to do this in the middle of a claim being filed. That is just a horrible tactic to force a refund that we've seen used repeatedly on this forum. I have never seen paypal actually advise this in the middle of a claim.
If the buyer said they would consider a partial refund and keep the bag, wouldn't that only be something the seller could approve? Can't paypal only decide if they lose the claim and have to keep the item or win the claim and have to send the item back? They can't just take "x" amount of money from the seller and let the buyer keep the item unless the seller has already agreed to the partial refund amount. If the seller agreed to it, why would the OP be sending the bag back??? I am very confused and the logic in this thread makes no sense. It sounds like some sort of miscommunication between the OP and Paypal to me. Hopefully OP can clarify exactly what happened.