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I would definately say that he is trying to scam you! If you are going to refund the money, do it through Paypal, do not transfer it to this guy. If he is legit, then he will still get the money back through Paypal, if it is a scam, than the rightful Paypal account will get their money back. (It isn't difficult to hack someone's account, especially if they are out of town, in the hospital or even worse dead. ) I would also recommend tracking his email address (both his and the paypal one), you can trace email addresses and find the true owner of that address. That way you can find out if the ip addresses are even from the same country.
Good luck!
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