I don't think PayPal has transferred the money to anybody yet. They have placed a hold to lock-up the money (yeah, I know this doesn't do you any good), but this looks like the beginning of the dispute investigation. You should be able to have your say right now before they make a permanent decision and keep or return your money.
Couple of questions:
1. Paypal doesn't resolve disputes oder than 45 days.
2. Paypal contacts you first to let you know that a dispute has been filed (this is when they put your funds on hold).
3. If it was a credit card chargeback, the still have to have an investigation first where they contact you to get your side of the dispute.
4. Even credit cards do not follow-up on claims that are filed 6-months later.
Now if you do your research and can find other evidence that Jason Yao has done this on other transactions, try to get these other guys to make statements about being charge-back after seemingly good transactions. PayPal and the CC companies will also have records of inordinately high incidences of claims for money-back by Jason Yao. They would be able to see a pattern to this guy's activities.
Call Paypal immediately.
Exactly!! This is how this works. Paypal can not in no shape, form or fashion just take your money unless it's
something you are not telling us. Not saying that this guy isn't a scam artist, but it looks as if he only has Paypal
holding this money until he receives his knives. Now that he can do. You really needed to send this & all knives
with some sort of signature confirmation from now on if you don't know who you are dealing with. I put Insurance on
most of mine, track it, have them sign for it & then have my receipt returned. That's if I don't know the person.
Paypal will not just take his word for this. It has to be proven somehow as to show them that his knives were never
received. They can not & will not do this!! I have been there and know this. They are only holding this in limbo until
it's resolved. Better call them and explain it to them just like this. If not, you could own Paypal if he did wind up with
your knives and they issued a complete refund to this so called buyer. Just sayin bro.......Get on it now!!!!!!! I wish you
all the best, but look at this as a learning experience and pray it never happens again. I will do my best to contact this
guy myself if you want to release his information to me. Don't think I won't have my say with ANY Scam artist, but it's not
what you are thinking as far as what Paypal has done to you. Trust me on that!! If I am wrong, I would love to know & you
could call me and I will help you to counter them with my Lawyers. How is that?