It has been nearly three months since you purchased this $20 bag from the seller in Hong Kong. It is too late to file a complaint through eBay or PayPal.
However, if you paid with your credit card through PayPal, you could try calling your credit card issuer (at the 800 number on the monthly statement) and ask for a chargeback, explaining the damaged item came from Hong Kong. If you are a valuable customer, a refund may be granted by your credit card issuer.
Next time, I suggest:
1) check the seller's feedback prior to making a purchase on eBay (several red flags were clearly visible on this seller)
2) never wait more than 44 days to file a claim with eBay or PayPal if there is a problem.