Unfortunately I didn't qualify for seller protection insurance, since the items were: "in-tangible" However, paypal is fully aware at what is going on, and I've been advised to stop harassing them and calling them every day.
Ultimately paypal is responsible, and if I can't get my money, I will go after them.
I want to avoid OSI's account administration department at all costs, because of .. uhm... prior activities. I won't go into extreme detail..
It is a possibility that the eBayer was hacked, the dumbfuck puts his email address in his User ID for eBay and now it's up to me to take responsibility for his stupidity.