Tracking numbers...useless, PayPal seller protection...useless, honest buyers....priceless.
Touch wood...I've not had any PayPal problems (yet) but keep in mind they basically offer NO protection to sellers unless you have trackable delivery with online confirmation.
For high value shipments you must require Xpresspost service to Europe if paid via PayPal or credit card. If this package was sent "small packet surface" then it was insured for $100, if the buyer claims to have not received then you can file a claim for loss with Canada Post. I don't think they even investigate these claims (there really isn't any way to do so). At least you will get your money back although the buyer may end up with both the goods and his refund.
Ben

"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915

"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.