How to give the buyer his money back on Paypal?

Hi so I'm in a really tight situation.

I'm from Edmonton and I sell secondhand gadgets. A person from Vancouver ordered three iPhone fives and a laptop, and payed via Paypal. Only problem is, he paid before telling me. And now the items he initially ordered are out of stock. He already paid, but he won't be getting any items till March, and says he can't wait that long. Paypal has a new policy wherein the seller (me) can't get access to the money unless the seller ships the product. I won't be shipping the product so the money is just there hanging.

How can I give the buyer his money back? I sent Paypal so many messages and they have not replied to even one.

If the buyer does not get his money, he threatens to send me to jail.

Have you tried to click refund? Other than that i would call them & get all info, names, what to expect or perhaps they can do a refund. The buyer can open a non received item dispute for a refund. Just let ebay/paypal work it out but by no means pay him in a different way, ie check, money order etc., as he could win a paypal dispute & may keep your other refund.
A clear email thru ebay messaging with your intent to repay upon paypal reversing the transactions. He probably feels he is being scammed & just needs to be assured you will remedy the situation with paypal. Forward the emails from paypal to show you're sincere, i think paypal will refund quickly, especially if buyer contacts them too with item numbers & pertinent info.
This is why i hate dropshipping.
The link should have paypal ph number.

Get his name and address and send him a check. You could also click on "send money" and just send him the amount he has coming plus the fee he will pay when the money goes into his account.