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It sucks, mainly because most people won't insure packages because stuff for the most part get where they're supposed to go and done deal.Of course I don't expect him to just refund me but relaying this message to eBay as the seller would help the situation because I had a friend go through this exact same thing and the seller and the buyer were both taken care of. The seller in this case must have thought I was making it up or lying because he didn't even try so that's why I came here to ask for advice. Also the USPS said that it would be best for the seller to contact them anyways but I've never dealt with this so I really don't know. I got ****ed around. It is what it is..
situation sucks, no clue what ebay or PayPal will do. Ebay sometimes will take the loss and give you a refund and let the seller keep their money.
I would open a case with ebay, speak to them via telephone and provide all proof you have and direct number to the post office to speak with. That will be the best outcome since the seller did do what they were supposed to.