I sold an item & paypal won't give me my money?

So recently I sold an iPhone 5s for 500$ so the buyer asked to send the item via USPS express delivery & send paypal the tracking number so that my paypal account could be credited (this was the original deal) the. Paypal send me an email saying that there was an error with the transition, that 300$ were added by mistake from the buyers account. After that I got an other account saying that I have to send the buyer the 300$ that were added by the error via Western Union & get back to them with the details so that my account could be credited. So I told the buyer & PayPal that I was not going to do that, because that was not part of the deal & that I wanted either my iPhone 5s back or the 500$ that I asked for. Now I contacted the buyer & he agrees with me and told paypal about the problem, I also contacted paypal & they keep on telling me that I have to send the buyer the 300$ that were added by error so that my account gets credited. I told paypal once again that I wasn't going to to that, because that was not part of the original deal & now they send me an email saying that they are going to take Legal Action on me. So I wanna know if there's anyway that the buyer can get he's money back? & what can I do in this conflict?

You got scammed. Paypal will NEVER ask you to send an item before money is credited. That email was not from Paypal. The first rule of Paypal is that you DO NOT send anything until you go to Paypal.com and the money is IN your account
Paypal will also NEVER ask for money through Western Union - that's a Nigerian scam

You are NOT in Contact with Paypal. You are contacting the scammer using a fake address. If you call Paypal on the number listed on their website they will verify there was NO transaction

You need to go to the police with all emails as you are the victim of a fraud

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