Hi ... Seller..no longer a registered user is more likely a decision made by ebay rather than seller.
It is really your problem not PayPal. Everyone buying on ebay should the rules and money would not be lost..
http://pages.ebay.ca/help/buy/paypal-buyer-protection.html
Only option is a credit card chargeback if payment was funded with one. Call the 800 # on back. Have all transaction details on hand when calling.