PayPal gift payment disputed

Hey guys, please help.

Today i sold my LoL account. A guy sent me the money as a gift. Yes, i am pretty sure it was a gift. No fees and under "Refund Amount" it said:
(Partial refunds are not available for personal payments or for transactions marked as pending)

Actually he opened a claim, not dispute. Non-receipt claim saying he didn't get his item and he wants his money back.

When i click to respond this, i got 3 options:
-Issue the buyer a full refund.
-I can provide compelling evidence (ex., Tracking information for delivered goods).
-Provide proof that the buyer has already been refunded.

What should i do? I believe PayPal doesn't 'support' virtual goods, so should i just say it was for a LoL account/virtual goods. That way they will close it and leave me the money?

I don't think you can do that sort of dispute if it's a gift so I don't think it was a gift

it was a gift.. just do what the first guy posted here and keep us updated gl

Just post a screenshot of where the guy told you he was gonna pay you for a virtual item via paypal and then make sure the amount is clearly shown and post it as proof and bam he's fked

Sounds like you're trying to scam the guy.

They provide protection for virtual items since July the 1st. Just screenshot some btc transactions and you should be good to go.