I think both gosh and SaviC should be commended for being open and honest enough to provide copies of their PayPal transaction histories, as well as some other documents that help illuminate what is going on here. Having seen both transaction records, I can say that neither person has misrepresented himself whatsoever. I don't believe either is lying about anything. Every claim that has been made by each side is supported by their PayPal record. SaviC was in fact reimbursed $660 of the $1060, and this money came directly from gosh's account. However, PayPal subsequently did credit this $660 back to gosh, though it did not come out of SaviC's account. Thus, as it stands, gosh has the full $1060 he was supposed to receive for the sale of the knife, while SaviC is left with a $400 loss. SaviC is also correct that PayPal has placed some kind of limitation on gosh's account that I believe to be directly related to this case. It's possible they are waiting for additional information (such as delivery confirmation) from gosh. However, I haven't read everything (and indeed I've asked for additional information from both to help fill in gaps), and admit that a complete understanding of PayPal's position alludes me.
I should emphasize that I'm not trying to adjudicate this matter. My role is merely to discern what is going on, to distinguish fact from fiction based on the PayPal record. As stated, I'm happy to report that both sides have been truthful with regard to this. The real puzzle is: why did PayPal credit SaviC back $660 from gosh's account, but then reimburse gosh for this money? It's very odd that PayPal would pay out $660 of their own money. My suspicion is that this amount will eventually be deducted from one of the disputant's accounts. It's possible the $660 in gosh's account is frozen until he replies to PayPal's inquiries and that the 'limitation' simply refers to these frozen funds.
One thing I will say--and this is of course my personal opinion: having conversed with both members a few times, I don't believe either of them are out to screw the other or scam anybody. They both seem to be honest people and I probably wouldn't hesitate to trade or buy from either of them. I can see things from both their perspectives and understand why each is upset. It's a bad luck situation and unfortunately somebody is going to be left holding the bag unless this knife surfaces.
Thank you Bryan. You efforts here are to be commended and i, for one, am grateful for your honest assessment.
Which brings us back to what i've been saying all along. Both members should quit with the BS and get down to communicating, finding the knife if they can and working together to solve the issue as adults.