We've (we being Steve and I) been talking to JordanC, the guy who has decided to be a little fraudulent and dispute the money he paid for a subscription here at Paypal, which is illegal btw.
He seems to think that Paypal are making the inquiry..
I been through this before with over $400. Call paypal and tell them the story. they will end the dispute and tell you to work it out with the buyer because there is no physical property sent / gotten, They will tell you that they can't do anything and end the case in your favor... Done