eBay Lets Buyer Keep Verizon Phone and Money

I sold a brand new phone via eBay, well the buyer gets it and the next day says it stops working, and that it had been activated. I called Verizon to confirm it had never been activated, they confirmed, neither eBay nor Paypal resolved issue. Not only did Paypal refund the user their $300, they also charged me over $10 to accept the payment, and when they refunded the users payment, they refused to refund me the $10.  So now, a brand new phone cost ME $310 to take Paypal payments. Keep in mind I've been doing eBay/Paypal for 11 years with 100 percent perfect feedback. eBay ended up reversing the transaction, but Paypal refused to refund their part of the money.  Also, they put a fund hold on my account so that now when I sell something on eBay, it's weeks before I am allowed to get my money... Still with 100 percent perfect feedback... Paypal, RIDICULOUS. And WHY do we have to give eBay like 9 percent PLUS a listing fee, PLUS 3 percent paypal fee  PLUS a paypal money acceptance fee.  Explain that!? Thanks haha :)
 

**NEW** Horror Stories