marusia is probably right. ( Never never never open case and don't give paypal information. NEVER! )
PayPal already made their decision, only way you can win this, if you prove that he's really scammed you.
I've been scammed similar like that, but I won a case.
Do you have any chats with seller? Send it to PayPal.
Does seller responded to all your emails? If no, tell PayPal immediately.
I understand that website is using PayPal as a merchant, right? If so, there is your change to become leader. Read website TOS. check if website has Privacy Policy and etc. If you haven't received your services, ( THAT IS PROBABLY AGAINST WEBSITE TERMS

) tell the PayPal that this and this website TOS states that after payment i should receive services withing x amount of time. But I haven't received. And also add something like this: how you can allow selling 'scammy' services using PayPal merchant service?
In few words, if this website is using paypal as a merchant, you can win if you tell that to PayPal.
PayPal should give back your money and probably ban seller account..
There are many ways how to get back your money, but always you need to be smarter and one step faster than seller. Send more information as possible, check TOS, privacy policy, check what's illegal in website, and what you find - send to PayPal.
I was in similar situation. I get back my money , and after few days I received email from seller that he's going to beat me. Probably was really angry because PayPal became limited lol!
Anyway good luck with getting back your money.