I Think you missed what I was saying. IN MY SITUATION....
No, I got you.
1. The buyer did not do a charge back. <= buyer did not charge back nor did received funds back. Paypal held funds from me and reversed the BANK deposit that was completed quoting possible fraud.
Right. PayPal decided to disintermediate itself, that is, it removed itself from the payment between you and the buyer. I'm assuming PayPal returned the funds to the buyer, and the buyer should have paid them to you. PayPal makes it very clear that their deposits are reversible and will be reversed if payments violate their ToS or if the buyer no longer wishes to make the payment.
2. I was AWARDED damages in District Court. = I sued I won
A District Judge made a decision thus your argument is invalid.
Also the rules of no e-currency and paypal was changed recently in 2013.
Not knowing what evidence you presented in court or what arguments PayPal made, I can't tell whether the judge's ruling is correct or not. But just from what you said, PayPal didn't do anything wrong.
Again, I very much dislike PayPal. They massively screwed me over. I'd be the first to agree if they did anything wrong. But PayPal makes reversible payments, period. And PayPal reserves the right to remove themselves from a transaction they don't wish to be part of.