Paypal Seller on the hook for damaged guitar returned by buyer Internet

Ten days after receiving a vintage guitar, the buyer contacted me and asked about lines on the neck. I said I recalled lines in the paint, nothing unusual for its age and nothing to be concerned about. As I always do, I had posted a dozen photos, documenting every nick or missing paint in my ebay listing, even a darkened spot in the paint. There was no damage to the neck. Immediately, the buyer filed an "item not as described" case, saying the neck was cracked. I talked to ebay and Paypal, and agreed to a return only if I had compensation if it had been damaged while in his possession. It seemed fishy that the buyer waited so long and I was concerned that something had happened during that time. So, three weeks later, it came back to me - with a cracked neck. I notified Paypal that there was new damage and brought it the next day to a repair shop for an estimate of damages. The following day, Paypal refunded the buyer! Never even waited for the report! After several appeals, repeated explanations, submitting the repair report, I am still out in the cold. Every time I called Paypal, I talked to a different representative, was assured resolution. Then, an email from Paypal with a denial. There is nothing fair about the mediation process. It supports the buyer, controls the funds, and dispatches justice with great speed but no consideration of circumstances.