Well looks like it's not over yet, the buyer just opened another snad case through paypal. I can't even believe that that's an option now. I've now won 3 cases against this buyer, and now we're on the paypal appeal so fingers crossed.
I have had this happen a few times. I havent lost one yet. Call paypal and make it clear that the address is a reshipper. you have done your job. they will essentially have to admit they havent seen or opened the box and that they let a third party handle the package. that is not your problem.