Product: Money transfer, virtual currency, or money service

I am a small business owner in XXXX, NY and I would like to ask for your help resolving the issue with PayPal. 
I am in the business of selling XXXX XXXX XXXX XXXX and XXXX. I run the website XXXX. I have been in this business for over 6 years and this is the first time I am incurring such an act of a complete disregard to its professional duties and disrespect to its customers from PayPal.

I sold quite a few custom made XXXX to the XXXX competing in XXXX XXXX XXXX XXXX, XXXX, and XXXX XXXX. The nature and conditions of this process is that the customer must provide all their measurements and indicate every detail if their XXXX  is to be different from what is presented on our website. This is a pretty smooth process and we explain the routine upfront. 
However, there was an exception. Mrs. XXXX has ordered a XXXX  for her daughter, a young XXXX XXXX. This XXXX was made exactly how she originally indicated. However, upon receiving the XXXX Mrs. XXXX expressed the displeasure, saying that the XXXX XXXX was not of the tone she was hoping it would be. After we were unable to come to the amicable solution Ive suggested to involve PayPal since that was Mrs. XXXX method of payment. 
PayPal asked me to submit the evidence which I did ( please see the package attached ). I was dealing with PayPal but after a few month, after freezing my funds, PayPal informed me that all they did was to forward the information I submitted to buyers financial institution and of course buyers financial institution ruled in buyers favor. 
I made a few attempts to get the information of the buyers financial institution from PayPal to take them to small claims court but PayPal refused. I made a couple of attempts to sue PayPal in the small claims court of XXXX County, NY but the demand letters I send to both PayPals New York and California addresses were returned back to me as refused. 
PayPal was supposed to be a mediator between the buyer and I. They were supposed to conduct the investigation and arrive to the fair solution. Instead it simply forwarded information to the buyers financial institution. It appears the buyers financial institution is acting as judge, jury and executioner having apparently reviewed the case and sided with the buyer, and PayPal is acting like victim in the middle and saying they have to honor the chargeback. 
Chargeback is a voluntary banking scheme to protect debit card transactions in the event that a trader breaches a contract. If a bank decides that the customer has a case and reverses the payment, the trader has the chance to appeal. In my case that chance was never given to me! 
In my case buyer never returned the XXXX and never had an intention on doing so! She wanted the XXXX for free and because of XXXX luck of involvement and protection of the buyer she got it! The fact that the buyer did not return the XXXX, or raise a formal complaint via PayPal, should have been evidence against her claim, but PayPal prefers not to notice it. 
Please help me to get my money from PayPal or help me to get PayPal to the small claims court. 
Thank you in advance and best regards, XXXX XXXX