I may be using it soon here if the seller doesn't respond.
The problem still happens to this day with ebay.
And the other guy is right, you are not guaranteed an "ebay buyer protection."
There are obviously holes with ebay, and unfortunately they cannot all be patched, probably not any time soon. If you google this matter, you will find a plethora of news articles discussing the pitfalls of electronic transactions, nationally and internationally.
Ebay can't recover funds from non existant sellers. Paypal cannot resolve transactions that no longer exist and for which paypal members are unregistered and default to non-existant, for one thing.
How are the funds transferred for thieves? In a million ways. Examples include transferring the money to a cash card or wiring the money to a temporary bank account with the use of stolen credit card information and or identities that "may" or "may not" exist, then retrieving it from an ATM machine as cold cash, as one way, etc.
Also, internationally, VISA funds can be traded with 3rd party organizations that can register themselves as credit transaction authority overseers, but have never been registered with VISA or authorized as an official agency to handle funds, for example. So in essence, your card could be wired to China or any country and be completely drained of its funds, even go overly negative in balance, and you will have no way of recovering it, as the issuer can use/be under computer assisted bots, etc.
Similar schemes can also be deployed from virtual servers that do not exist anywhere in the world and are virtually untraceable because either the issuers are stealth bots, or the technology used to infiltrate stolen information to authorize illegal transactions (multiple network interface procedures also used) will use unparalleled enterprise and government software modules that are are extremely difficult and near impossible to decode/break into/track/etc.
The stories and possibilities are endless.
Don't ever expect ebay and/or paypal to solve all your problems, because they can't. The propaganda is there to keep status quo and positively speaking, some problems can be resolved, but versus the cold truth, clearly not all.
"Happy bidding..."