Did PayPal know that?
You paid PayPal. PayPal paid the seller. It's their duty to complete the transaction. It's not their duty to investigate if the seller has been removed from Ebay.
All they are asking for is proof of the scam before they give you back your money out of their own pockets, and you're not willing to go to any effort to give them the proof they want. They are under no obligation to give you back your money just because you want it. You have to prove to them that you deserve to get your money back, and just because you tell them you got scammed isn't enough.
What is so difficult to understand about that? No proof. . . no money. It's as simple as that.
There is your answer.
They have all the proof they need via lots of people complained via ebay.
Paypal own ebay. They should do all the work. That is their job.
I completely understand what you are saying.

