eBay/PayPal scam.

[JoeyT]

So I recently sold an omega on eBay. The buyer stated it was a gift and gave me the address to send the watch too (my first mistake, I know I should had only sent it to PayPal verified address) I shipped the watch with insurance/signature confirmation required. The watch got to the address but no one was able to sign for it, several redilivered attempts were made and then as of 3 days ago, the tracking number stopped progressing. Then out of the blue, PayPal awards the buyer a full refund without my knowledge. So now I'm out the cash and the watch. I'm going to try my hardest to figure it out with the post office in the hopes they can stop the delivery of the package and send it back. I did some digging on the "buyer" and found he is a 56 year old priest in WI, I called him and we spoke. Supposedly he feels his identity was stolen because he didn't make the purchases. Well I ran a background check and he used to live in Philadelphia, the same town that the eBay buyer requested I ship the watch too as a gift for someone. It all seems fishy and now I'm afraid I'm out the cash and my omega. Any advice?