PayPal Holdings, Inc. Money Transfers Complaint

PayPal Holdings, Inc. Money transfers department,

International money transfer Fraud or scam California

I purchased a service using PayPal for $290.00. The seller instructed me to send the payment through the Friends and Family gift method to avoid paying transaction fees. The seller then disappeared and never completed the service. I noticed his PayPal account is unverified and also uses a fake name " - ''. I opened up a claim with PayPal, and they said that they can not do anything about the dispute if its the Friends and Family gift transaction. They said I can try to chargeback through my bank. However, some of the funds for the transaction were paid for using my PayPal Balance. They said that money can not be refunded. PayPal closed my claim in favor of the scammer and now I can not reopen or escalate the claim. I have proof of the seller ignoring me after payment was sent.