That really sucks, now next time and everytime use an escrow account. It may cost a little but in the long run it will save you a lot more. Even PayPal sucks when it comes to taking responsibility for bad deals. In an escrow account the funds are held until you recieve the product and you release them.
...and it works both ways (forgot to mention it) once the escrow is opened he can't screw you by closing it.