Exactly but I was wondering if the below procedure can solve this problem entirely.
Seller sends BTC to the escrow
Buyer sends paypal and opens a chargeback immediately
The seller then asks him to withdraw the dispute
The buyer does it and now cannot open a dispute again, I believe since he already lost a dispute.
Then the escrow can release coins because there is no plausible way of doing the chargeback. I have not done this myself so thinking if this works or has something I have missed.
I've never thought about this. This might actually work however, I'm not sure for how long can someone continue doing this without getting in trouble. Paypal might find this suspicious.
Also, if this were to work, I believe it would only work with PayPal balance and not the funds that were loaded from a bank account/credit card.