The probelm here is that the buyer opened up a dispute without contacting me first.. once the dispute was made Paypal immediately took all the funds in my account and more putting me into deficit with the Paypal account... the first i knew of it was AFTER i had had all funds siezed.
Now the buyer wants to play hard ball with me and be a prick.

Where this all falls apart is that anyone can have your account suspended at will through no fault of your own and Paypal are quite happy with this as it puts extra funds into their account for X amount of time. At any given time, Paypal can have enormous amounts of wrongly siezed funds accruing interest to their benefit.
Just to add Paypal also charged me $5 for the buyers claim!