You need to save the packaging that was returned and contact Paypal again letting them know you did return it and that the address the seller provided was incorrect. You now have proof of the sellers bad intent. With this, PAypal should be a bit more understanding.
Similarly, I'm not sure how this would work in Chile, but here in the States you would now also have a claim for mail fraud with the postal service. While it might not go to far, enough claims and the seller's packages may just start getting tighter scrutiny coming in country.
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