What should I do?

I went through a failed purchase 2 months ago with a guy on another forum. He had a shift handle for sale for a $100 bucks plus shipping, I offered him $125 with shipping (if the shipping was more I made out, if less he made out), he accepted the deal.
I sent the money through PayPal to his account, 10 minutes latter he messages me telling me that I am ripping him off and that he wants his money now and is not going to wait for it , and he will send the handle out next week or no deal. So I called PayPal to find out what was going on, well PayPal put my money in his account but froze his account along with this message. THIS TRANSACTION INVOLVE A HIGHER THAN USUAL RISK AND WE WILL RELEASE YOUR PAYMENT AS SOON AS YOU SHOW PROOF OF SHIPMENT TO YOUR CUSTOMER!
So deal didn't go down and I had to file a grievance with PayPal to get my money back.
With the message PayPal sent him, who do you guys think was the one that PayPal was targeting as a risk, me or the seller?