[CORed]

If paypal will only refund $40 from an empty acount, I think you're screwed. I don't think the guy has any intention of ever sending you your monitor or refunding your money. He claimed to send it USPS because UPS has a tracking number for every shipment, and if he couldn't provide you with a tracking number, you'd know he's full of [censored].

If he claims to have sent it USPS and they "lost" it, you have no way of proving he didn't send it.

In the future, I would suggest that you insist on UPS, FEDEX ground, or another carrier that tracks shipments, or no deal, even if you have to pay the shipping.