First of all, I sympathize your situation, but if I were you, it would have ended as Item Not Received. There's too much at stake to say the card was delivered. Think of it from PayPal's perspective, they don't really know what the heck is going on, who is scamming who. It is hard for them to enforce anything.
On top of that, returning the card comes out of your pocket as well, now you have to prove this and that which is a waste of time. It is a lot easier to use the system against him, then send him the Gold Medallion back if you are an honest person.
If you want prove of the address sent to, you should have it when you lodged the package with tracking at the post office.