Okay this is fucking childish, Gooner, just send him a refund, its your fault cause you didn't get delivery confirmation. Which is extremely cheap. Yes the post office might've lost it, but without any delivery confirmation well you screwed yourself there buddy.
and to the OP, ive said it before and ill say it again, never, ever ever send money as a gift, it really doesn't do that much good and it screws you when you potentially get scammed, this is your fault. it gooner would've got delivery comp and the post office lost it, well it is your fault since you did send money in a way that is not reclaimable. You might've just sent him an envelope of cash, why use paypal if you don't try to use the services paypal provides.