I had this happen in 2009, I ordered a stroller for $200 off ebay,I tracked the package on the ups website all day waiting for it because it was a stroller that retailed over $400 and didnt want it stolen, finally it said it was delivered but it was no where to be found.I contatced UPS,they said yes it was delivered to xxx x street,well they had the wrong address from the seller (it was on my street thank goodness!) anyway as far as they were concerned they did their end and delivered it to the address they were given and wouldnt go back and retrieve it even though I had the email etc saying it was mine.....the seller wouldnt do anything saying as far as they were concerned it was delivered and I must have given them the wrong address even though my correct addy is on ebay and paypal accts,paypal said they couldnt do anything it was between me and the seller...the way I had it resolved was to trek down to my neighbors with my print out and explain they had something of mine by mistake, luckily it was no problem and they gave it to me, had it been mistakingly delivered anywhere else I dont know what I would have done.
I have also had my credit card info stolen twice now right after using paypal and both times it was stolen to sign up for online dating sites I got my money back after filing with fraud depts but caused bounced checks at my bank that I wasnt reimbursed for,I now refuse to use paypal and will send sellers a PM on ebay to ask if they will accept other payment, most do but not all...it is really annoying ebay almost has nothing but paypal AND you cant sell anything without a paypal acct.