I think I'm getting scammed on eBay. What do I do?

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Someone Purchased from me on eBay, buy it now, with confirmed address.. and as always, I always pay shipping through PayPal and print out the label to whatever address is on there.

When I check the tracking, it says "Delivered" but then above it has "Undeliverable as Addressed"

And a BUYERS CASE was filed and opened from the Buyer!  He wrote this:
 

"I figured out what happened. Ebay gave you my old address for some reason, when Im pretty positive I gave my new one, and paypal keeps my new one too. I called the people that live there now, and they said they gave it back to the mailman, so I'd say its being returned to you. If I need to paypal you extra shipping or something, so be it. If you can, check to see if its being returned or what not, and let me know what we need to do. Thanks"

What he doesn't understand is PayPal and eBay did not give me no "old" address.  He just never updated it.  Because I print out labels according to whatever is on their PayPal account.  So now he wants me to ship it to another address that isn't even on PayPal? And what, if I do that, he could probably say he never got it and that I owe him a refund because when they investigate they will look at the confirmed address that the tracking for my shipment when I check on USPS.com says "Undeliverable as Addressed"

This was my response to him:

""I will let you know once I receive the package back in the mail. In the mean time, could you update the address to that on PayPal? In order for us to be both protected, I have to ship according to the address on the PayPal account because when I print out the shipping label, whatever is on PayPal is what the address that will print out as."

What should I do next? This is the only option, correct? He has to update his PayPal address so when I send him an invoice for shipping, when he pays that, I can print out the shipping label for that which has the correct address and ship? If he doesn't abide to that, then do I just give him a full refund?
 
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I always ship to the verfied address. I would call PayPal and sure they could walk you through it.
 
 
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