That is some seriously bad karma. I can just imagine the person wrapping the rocks and chuckling at how they're ripping off yet another person.
I purchased a pair of Louboutins from someone that was listed as in Los Angeles. A week later, I get a package from China opened it and it was a bunch of colored rocks wrapped in styrofoam, bubblewrap, and 10 tons of tape that took me like 10 minutes to open.
I can't believe paypal's response to this. I thought you can lodge a claim based on "goods significantly not as described"? I'm so sorry this happened to you!
This reminds me of someone else's experience I read on another board. She bought an LV bag from eBay. The listing has photos of the bag and it did say what you see is what you will get. What arrived to the buyer was a box with photos of the bag inside and no actual bag! The nerve of these people!!