Once you have sold your item and been paid through PayPal there are two things you can do to protect your money;
a: Spend it by purchasing something with PayPal.
b: Send it to a friend's PayPal account.
If there is nothing in the PayPal account, they cannot retrieve anything.
I had an eBay buyer contact me with an obviously bullsh*t (described totally impossible fault combinations) problem recently, so I did just that, spent all my PayPal funds on what I wanted ASAP! I didn't need to bother though, as he didn't lodge a dispute...oops! hahahaha
PZ.