Buying from abroad and refunded item but currency exchange through Paypal has left me £50 short

Hi, I recently bought an item from Australia for £800 and I'm in the UK. The seller then decided 10 days after shipping that he wanted the item back, even though it was still in transit and refunded me the cost in Australian Dollars, which equated to £750. I would like to know whether he should have paid me back in english pounds, so that I wasnt out of pocket. He has asked me to send him back the item when it arrives and then a day later told me (and showed a picture) that he has already had the item returned, if he actuallty sent it in the first place and I was being scammed. I have looked at the tracking reference he gave me and it still says that it is in transit, so not really sure what is happening. If he had recalled the parcel, I'm sure that his carrier would have updated the tracking notes. Anyone else had this happen to them?

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It’s highly unusual to be able to recall an already shipped parcel. Even when ppl have concrete proof they’d been scammed, they’re not able to recall a package from the standard U.K. couriers (speciality/pallet, business only, and smaller couriers might be able to - but again I find it rare to see this said!) and I’d posit that it’s the same in Aus too.

It’sa strange pickle, as to the loss in money.

Can you confirm that the refund was from your initial payment? Part of that would’ve been the new U.K. import tax, which I’d think you’d have to claim from HMRC.

What does the refund say when you view it as an itemised list? I think you’ll have to use a desktop or certainly the PayPal website rather than the app to see if that’s available or not.