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buyer says insured package not recieved - help

I sent out a package on the 22nd of june with delivery confiramtion and insured for $399 - now the theif says didnt get it

- of course my husband sent to an unconfirmed -since he said " new ebay powerseller rules says paypal will not refund if you have tracking" and packages insured over 200 are only given only after a signature ..so what am I going to do ??

I am of course having my husbands head on a platter for lunch - but other than that??
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