There is no conspiracy on the part of your seller.
If the item is shown as being delivered, then the error was made by Canada Post.
After questioning your family/roommates, go to the local PO and ask if the item is there. Sometimes the postie will mark something delivered which has actually been left for pickup at the PO. A card is supposed to be left about this. Ask the family about that too.
Given the value of the parcel, I suspect it is at the PO awaiting pickup and payment of sales tax, duty, and the Canada Post service charge, so bring government issued ID and money.
There is little chance of winning a Claim from Paypal on this, since they go on the Delivery Confirmation. However, they may refund you if you can show that you did your due diligence with Canada Post. Get report numbers from the postmaster.
Hmm. Your post makes me think that it is possible that you have the wrong address given in Paypal. Perhaps an out of date address, or an error in the street address or apartment number. Ask your seller for the address he used. Go to that address and ask about your parcel. It may have been delivered there and refused.
