lmao, that's the guy's dog who scammed me. Death to him!!!
It's a reebok sock.
Anyway, I filed a claim with my bank. It will take up to 10 business days to process, but for now they have credited me the full amount but will be asking for additional information. The lady on the line wasn't too sure of what I should do other than wait for the claim to go through and provide them with as much information as I can about the subject. On a more positive note, she didn't seem eager to push me in another direct such as at Ebay or PayPal, and assured me that what I was doing was the correct way of getting my money back.
If all goes right, I will obtain a $460.20 chargeback through my bank which they will just take directly from PayPal. At this time, PayPal will then need to use their insurance or actually go after the guy for their money (from what I understand). This makes it PayPal's problem and not mine or my bank's. But that's if everything goes right. :p I kept the $175 in my paypal account, so it's still sitting there. Should I get a chargeback or something, I don't want it to look like I was the one trying to scam ebay and paypal.