...Refunded moneys to buyers.? Ok so we had a listing on ebay for some blackberry storms. We were getting them drop shipped from xila broadband, so we did not have the actual product in hard. We sold over 20 pieces and collected almost $4200 for them. We sent xila the money needed for the phones totalling over $3000. Well now they are saying they are unable to get the phones and they got scammed out of the money we sent them from someone in China. Its been over 10 days since the auction ended and now people are wanting their moneys abck understandably. I have been refunding it back to them thru paypal, however I have no money in my paypal or my bank acct as I closed it after this crap took place. My balance just keeps going negative on paypal. My main question is, what happens when my paypal balance reached the negative $4200 once I refund everybody? Can I get in any legal trouble as long as I am refunding the money back? Or will it just go to collections (the negative owed to paypal) ? We really got scammed and I am hoping to recover the money we sent to xila so we can pay paypal back, but what will happen if we can't? NO smart asses please. Just need help. Thanks!

Paypal is not going to care that you got scammed. They will not share in your loss and they will not want to wait to get paid. (They may, in turn, refuse, to refund the money until they get paid.)

Paypal will turn you over to collections to try to get you to pay. If you don't, you will be sued for the money.

It's unlikely, but didn't you know it was illegal to buy counterfeits and then try to pass them off as the real thing? Even if you were dropshipping, you should have known this was too good to be true.