This topic comes up every so often. Some years back I asked PayPal. Unless they have since changed their policy*, the answer is: it doesn't. PayPal, despite encouraging people to offer their service in as many places as possible, officially offer zero protection outside of Feebay. They
may settle some cases in buyers favour after problems on non-Feebay sites, but they are not, apparently, obliged to do so.
* And as it is now six years since I asked, they may have . . . but I doubt it.
http://www.ebid.net/forums/showthrea...ECTION-OFFERED