No one actually lost money from this. I get it's the intention that matters and he tried to scam a user. Him failing in the scam doesn't make it any better, but shit happens. I don't know you really so I don't care what you do, just thought to say this.
Forgive, but don't forget. It's one of the quotes that I really like. Forgive people for their stupidity as shit happens but just don't forget what they did. If he tries to trade you make sure that you don't take PayPal from him and that the funds are guaranteed. People deserve second changes so long as everyone remembers what they did to begin with because everyone is capable of anything.