tracking package/ seller denying receiving package

cv029924713us my package was sent back too seller expedited shipping it arrived there in shanghai Sept 2 and arrived in shezhen Sept 6 and was dispatched to seller same day seller doesn't want to own up to the package being delievered so he doesn't have to refund me $255 or just send me another phone since it was defective... My problem is I opened a dispute with paypal and after a month they close my case talking about the tracking I provided was incorrect plain as day tracking says it was picked up and processed from USA and arrived in China so where is it incorrect again? Can you guys look into this not fair the seller gets walk away with $255 and I get nothing in return and if you guts can't do anything well ill just report it all too IC3.org