PayPal seller fraud

Description

Seller shared a UPS tracking # for a package that was delivered to my city in California/USA. But checking with UPS fraud dept. revealed that the package was never shipped to me or to my address. I sent this verification letter (from UPS fraud dept) to PayPal, that the item was never delivered to me, but PayPal is siding with the seller. PayPal keeps on saying the a package was already delivered (to my city). However, UPS confirmed that the tracking # that seller shared was never addressed for me/or my address. Also, after a thorough online check (social sites, etc), I found that the seller is likely someone in Philippines pretending to be in USA. What can I do?