all paypal payments are now insured to full amount and paypal accounts are linked to bank accounts , so when threy try to take the money back its not only comes out the paypal account outstanding comes from the bank as well , and most bank accounts now a days have overdrafts, so i would report it to paypal first and let them try deal with it , if they cant get you the money back if you sign in to your paypal account you can look at the transaction details and get his address then get in your car and drive to his house how ever far it is and try sort it out with him . you might be realy unluck