Hmmm? From the way Paypal works, you're hosed. If it were me, here's what I would do to even the score with the prick.
Is the dickweed selling anything him himself? If his stuff is cheap, I would be calling friends all over the country to buy it up and pay them back. After that's done, have them neg rep his sorry ass back into the stone age and off of Ebay. Hey, but that's just me, I can be a little big ornery sometimes and don't deal with douche bags all that well.