If the seller cuts and runs and emties the paypal account, then your stuffed, but since they have issued a refund I have no idea. Ask ebay if you should send it back now or later?
I buy plenty of ebay, as has been said, because you cannot get a lot of it anywhere else.
You are protected as a buyer on paypal so that is not true. It happened to me many times and I have received my money back.
I wouldn't really send it back either. They never asked me to.
sid