Paypal asks me to return the refund they issued to me back to seller?

[guitarguy]

I bought this 18lbs pro-audio equipment off of ebay in Germany. This aution was selected to have the "buyer protection" logo next to it. I won the item and Item got shipped to me. Long story short. The seller shipped it very poorly in 1 layer of cardbox with no insulation whatsoever. Damaging this sensitive equipment which cost me 190euros incl. shipping (about $280 US)

So I opened up a claim at paypal cause the seller clearly didnt want to negotiate on some solution. He also sent the cheapest way for $20 and wrapped this heavy metal unit in 1 layer of cardbox with no insulation. While he asked, and I payed $60.

The seller didnt respond to my claim which normally Paypal wouldve then had to vote in my favor and give me a refund which they didnt. I called Paypal and shortly thereafter someone at Paypal decided to refund me 90euro back to my account anyway. The seller then objected and Paypal now asks me to contact the seller to return the refunded money. They dont dare try to take that money away from me after what the seller did. and by not having the guts to come to some solution with me..

My question is, what can Paypal do or how far will they go to get the money back to the seller?