yep, just start a claim and explain it's a hacked player, that you put 10GB of music on it and now you can't use it anymore..
don't send it back or accept replacements..
also no need to make threats about negative FB, just stick to the facts, and demand a full refund
if the seller isn't willing to issue a refund, paypal will close the dispute after a while and refund you in his place
in the end, you'll get a free player..