So when Paypal refunds your money they just take it away from the seller?
When possible. That's why they have a 15-day hold on money from new accounts, and all sales are subject to a similar hold if they become active.
If the seller has removed the account money, you'll likely get "here's $20 that was left in the seller's account, you'll get more if he's ever stupid enough to accept any. Good luck!"
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