What would you do, as a buyer, in this situation?

[Billy305]

Yeah, but the guy offered to refund the money and didn't.

You are already assuming he's not going to refund the money and as stated before the buyer still has over a week to make the claim.

Again why wouldn't you even suggest allowing a single business day for the seller to make good on his word. Like you said there is still plenty of time to get the ball rolling with PayPal.