I would be careful with ebay, I sold BTC on ebay and some guy did a chargeback on them. I had already withdrew the money from PayPal ($650 bucks) but PayPal sided with them since it was a "virtual good" and I couldn't "prove" I sent them... Even though I had ebay messages and the block chain showing I sent them. Moral of the story, PayPal sent me to a creditor that I now have to fight. It's total crap
Thats insane... You should get a lawyer, win the case, and sue paypal for complete ignorance and wasting your time. I just dont understand what that company is thinking