Dude, he's not gonna rip you off. He has a business to run. You made a mistake on something that has nothing to do with him, on something he is making no money on. Now he has to take time out of his busy day to figure out how to solve your problem. Give him some time. PayPal does have lots of screwy practices so I doubt he's deceiving you. And your calling him out because you screwed up and he's not dropping everything and spending a bunch of time to fix it immediately, which may not even be under his control?

****ALSO, SENDING PAYMENTS AND ASKING FOR REFUND IS A CLASSIC SCAM TACTIC, SO HE HAS EVERY RIGHT TO DO IT THE PROPER WAY, NOT JUST SENDING YOU MONEY BECAUSE YOU TOLD HIM TO****