I don't see how PP could deny you.
You didn't receive what you purchased, let alone the fact that it arrived damaged.
I had a similar experience not too long ago, the guy never shipped my item after over a month nor did he reply to my dozens of PM's, emails, calls OR dispute/claim with PayPal.
I finally got my money back & paid it to another member who read my post about the ordeal who sent me the part I didn't get from the guy who took my money.
It sucks there are people like that in the world... bad people who take your hard earned money & pull crap like that.
I'd try to call PayPal & talk to a higher-up person, might be worth a shot.
BTW: It's always a good idea to use your Credit Card as a funding source through PayPal. Most cards offer fraud protection & might be able to help in a situation like this.
wvcat, if you ever buy anything from me, I won't do you wrong.