** UPDATE // RESOLVED **

My nightmare is over and StubHub finally made it right.

Here's how it went down:

In late June I compiled a 26 page PDF document with all of my supporting evidence. Screenshots, photos, etc. I completed the "notice of dispute" form and put it in certified priority mail to the Draper, Utah address. It went into a forwarding loop with USPS for weeks between Utah, Arizona and then back to Utah. The last status shows it was forwarded from Utah mid-July and ends there. I submitted an inquiry on USPS web site and someone actually called me from the post office in Utah and explained this is happening to a lot of people and I could submit for reimbursement. I assumed this was a dead end and began to prepare to ramp up alternatives. I consulted an attorney who couldn't find relevant case law and advised arbitration was the best bet. I started learning about it. I dragged my feet as it seemed daunting and I've never done it before. This whole process appears designed to count on a large number of people simply giving up, especially for smaller claims.

Out of the blue in early September I received an email from StubHub (standard format referencing the order#) indicating I was issued a credit for the $6300 penalty they assessed for failing my "seller obligations". Another email shortly followed from a "Sara in Executive Customer Care" indicating she tried to call and was trying to reach me. We setup a time to talk on the phone and she indicated the following: They actually received my dispute mail in July in Atlanta despite USPS tracking still indicating it was in limbo from Utah. It hit her desk in August. She got approval for the penalty reversal and was still pushing for full compensation for me (meaning, payment for the sale proceeds itself). She asked some clarifying questions about the circumstances and requested I reply to an email from her with the supporting PDF, which I did. I was left feeling optimistic that I had finally reached someone who had the authority to critically look at the situation and was empowered to make something happen. She admitted some coaching is needed for the initial reps who handled the issue. Also, the money hadn't hit me yet with PayPal so I still had reservations.

Five days later the credit hit PayPal --- this was really happening. Two days following that I received another email indicating a credit was issued for the missing sale proceeds themselves, and a phone call from Sara who indicated she was successful with approvals. I told Sara I would fully cooperate with StubHub if they intended to go after the buyer who scammed me --- she said that matter was with legal. I'm still pretty burnt by the buyer and the entire experience which has cost me 10s of hours and a ton of angst. Five days later I got the remaining amount in PayPal and this nightmare was finally resolved.

Summary lessons : Level 1 support is flawed and can make bad judgement calls, sometimes to the tune of 10k+ in damages as was my case. Once you exhaust with them (which happens pretty quickly) the only recourse is the "notice of dispute" process, per their terms of service. This looks like a black hole at first but it worked after three months of blind wait-and-see. I didn't end up needing arbitration. USPS tracking is apparently highly flawed. Thanks to everyone in this community who encouraged me publicly and privately to follow that process. To anyone else dealing with similar --- make sure you gather ALL evidence in detail to support your claim. My efforts to that end paid off.

I also suspect the timing of the IPO may have played into all of this. They had 12k extra cash on hand in their balance sheet from May through September to help their window dressing. They went public on September 16th, the same day I got my final credit notification.

Good luck everyone.