Dealing with a chargeback after Paypal forced Paypal balance

I recently purchased an item on eBay, and was forced to go through PayPal buyer protection. The claim was denied due to having two other previous claims from companies not sending me products within a ~24 month period.

I paid with my bank but refused the funds until the case was dealt with, and now with PayPal denying it, they are telling me to go through my bank and file a chargeback. The only issue is that PayPal auto credited it to my PayPal balance instead of trying my bank again. I fear that if i pay the negative balance of how much the transaction was, and file the chargeback and win with my ample proof, that PayPal will still show a negative balance afterwards.

Basically I want to know if its better to:

Add the money to the account, the same amount the transaction was, to get rid of the negative balance, and file the chargeback with my bank. If PayPal shows a negative balance from that, fight their collections.

OR

Not pay with my bank at all, and fight PayPal's collections with the proof I have of them not honoring the Buyer's protection.

I submitted a BBB complaint and got a case number against both PayPal and eBay, have a police report, and every communication with them transcribed.

I know I am explaining this awfully and its a shitty situation but any help is appreciated. I can clarify whatever is needed.