PayPal have awarded me £0.00 in my item not received case!?

[WeAreEternal]

I bought a computer game on eBay over a month ago, I do not believe it was ever sent.

When I contacted the seller to let them know it hadn't arrived they said they had been in hospital so had posted late, please wait, and they just asked me to wait and wait.
After a month a told them I didn't want to wait any longer and they said "fine I will refund you when I get paid on the 31st"
So I waited, the 31st came but no refund was issued.
I contacted the seller and they asked for my PayPal address, which I gave them and they sent me a payment for my payment less their original fees.
I rejected this and returned it and asked them to refund my payment explaining that PayPal would refund their fees when they sent the refund.
They told me I would have to wait until the money I had sent back had cleared into their bank account as they didn't have the money to send the refund again, when I said that wasn't good enough they became abusive so I said I would open a case and asked them not to contact me any more.

An hour later I received an email in PayPals messaging center saying

Dear ,
We have been informed by that you have reserved a refund that was initiated to you, claiming that you paid more than what was refunded to you.

Transaction Details:

£23.70 Oct 31, 2015

PayPal can only claim for the amount that you paid, you cannot claim for more than what you paid. If this continues, we will have no choice to have your account put under review, which can affect the usage of your account.

Please do not reserve the payment again when a refund is initiated to you.

Yours sincerely,
PayPal

But everything else is C&Ped exactly.

I was very annoyed by this, clearly the seller had called PayPal and said that I was refusing to pay the fees and other lies about me.
I was annoyed so opened a PayPal dispute, the seller called PayPal again (they told me they did) and the claim was escalated by PayPal and then closed finding in my favour.
However it says,

"Status
Your claim has been resolved and you'll receive a £0.00 GBP refund.

What happens next
Please allow up to 7 days for the refund to appear in your account. Once the refund is complete, the case will be closed."

It's now been almost 7 days and nothing has happened and I don't have my money.

I don't understand how this can happen, how can I win an item not received case but be issued a £0.00 refund?
What am I supposed to do now?
I'm going to phone them later but what am I supposed to say?
Can I do anything?

Has anyone been in this situation before?

Check your PayPal account. Maybe they already refunded you the first time but the automatic email is just for courtesy.

The transaction has definitely not been refunded.

The seller has even sent me gloaty emails about how I did them a favour as now they don't have to refund me at all.

I'm not familiar with opening a claim with paypal, but did you have to enter the amount your refund was for? When you open a case with ebay all the information on price and postage is already filled in. You just have to tick a box to say you haven't recieved the item and you'd like a refund.

Are the messages definately from paypal? I think they sound very odd. As for the paypal fees, if the seller refunds, then they get those back. As a pp says I think you should phone paypal and speak to someone. It might also be worth seeing if you can open a case through ebay as unless the seller can provide a tracking number which proves the parcel was delivered, then ebay will refund you both the purchase price and the postage.

I would neg them, call paypal and go to your bank and ask them to take the money back for you instead.

I finally have resolved this after four calls and numerous emails with PayPal.
My refund is now being processed and it looks like it is all finished with now.