They wanted a PayPal invoice from you so they could get the email address you used at PayPal. They then sent a fake email that "looked" like it was from PayPal saying you were paid when you really weren't. Your money is gone along with the item you sent.
They did not delete their account. eBay kicked them off when they were reported by another seller they tried to rip off. You fell for a scam.
PayPal doesn't screw people over. The buyer may have done something. You need to contact PayPal customer service immediately, give them the information you have (including the tracking number you have for the shipment), and ask them to research and advise you. Ordinarily PayPal will not allow a buyer to do what you describe, so something is odd.
Contact Paypal, this goes to their fraud department.
Personally I would NOT have shipped the item till I received the money.
No, the buyer cancelled the transaction. There is no reason to EVER to accept payment that does not use Ebay. Why would you agree to that? Any legitimate buyer would not ask you to do that. If buyer is no longer registered on Ebay nothng they can do. You can contact the police in the town where buyer lives.
contact paypal about this
Money was never there.
Sorry to be the bearer of bad tidings.