tbh, this made me abit laugh. Ofc its sad for your lose.
But just imagine, hes prolly a child and use the paypal of his Mom or Dad. They did hold the funds and u r fucked up. So what he can do to get abit respect of u?
ofc, he starts lieing and hopes u r dumb enough to belive in what he's telling u.
I at your point, would just call PayPal. And ask for the Address and full name of the person which own's the PPAccount. Call him by phone and tell him ur story, send him the pictures. If its true, that he should be a hacker, then give him the e-mail address of the conversation, that he could go to the Police to get the ip and logs of the provieder and the newb will be punished.
Done that once to a scammer, but we lifed both in germany, and as i did contact the poice & law, for a 310 euro trade with him. I did even get more 800 Euro out of the process. :P And the guy is now implemented in the german "SCHUFA" and will never get a credit of any Bank in his whole crapy life.