This person purchased a valued of $27.00 Microsoft gift certificate on 12/08/12 via email transfer.
It was given instantly, but he opened a " item not received " dispute PP-002-135-026-881 on 12 /27

I re-typed the code again on the PayPal dispute dialog and he never replied back.

I check with Microsoft and it was already redeemed by him, but money was still held for next 20 days.

What scam is it?

If the money was not returned to me I shall report to Police