I have been refunded a few times. You know, when you found out too late you clicked the wrong item.
Or when weeks go by and you still have no indication of the item being shipped.
Whenever I was refunded, it was always marked as such bij the seller.
So there was no doubt who was the original seller and who was the original buyer.
I hear there is a scam where people get refunded by a seller. By simply sending money back to them.
And then this seller opens a dispute, saying he never received the goods he was paying for.
But the legit seller will earmark his payment as a refund, and you are okay.
And PayPal knows this payment cannot be followed by a claim from either party.