I must be missing something here. If you thought you were going to get a refund through the vendor directly why did you issue a chargeback?

If you're asking for a chargeback from the payment provider on the payment you gave the vendor, why would you expect to still receive the product/service or a refund directly from the vendor instead of receiving it from the Paypal dispute process?

Forward the communications/threats to Paypal along with anything relevant like their cancellation policy that they are refusing to honor.

I've stopped using Paypal years ago, but when I did have legitimate issues, they were pretty quick to help me out.

Lube up...