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Don't close the PP case. I've had nothing but good experience with Ribble but that sounds like a page out of the eBay scammer book. They should provide the refund to PayPal and then case closed.

I had a German site dragging its feet on return of a defective trainer and the PayPal dispute really greased the skids and helped the problem get ironed out. They refunded money and case closed.
 
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