>>Show me any auction were the seller states "I am responsible if this auction gets lost and you chose to not insure it"

Why would showing you that make any difference. Why would any seller state that. It makes no sense.

>>Show me any rule where it says the seller assumes all responsibility for the Post Office getting the package delivered.

I would consider this basic contract law.

I have a basic question for you. If you went down to Sears and bought a new refrigerator and they never delivered it, but could prove that they loaded the truck (an independent contractor), would you think that Sears was not responsible to refund your money or actually deliver the fridge?

I notice you fail to address the fact that the buyer here paid the insurance cost which you specified in your auction, so any complaint about him not paying the insurance is bull . . .

>but the buyer gave me an incorrect zip code and admitted it in his email.

well you didn't state this in your original post, you still don't state you discovered this. Was it before you shipped or after. I would still expect that the package would either find its way to the right place or be returned to you. If it got lost rather than getting to the buyer or back to you than I would fully expect that the Postal Insurance would cover it, and it was your fault that not enough insurance was posted. Of course if the incorrect zip code was the problem, the chip still may show up. The problem is that paypal only gives a buyer 30 days to file a claim, which sometimes is not enough time to wait for the Post Office to sort out a problem.

>>And have another seller and club member come forward and say that James Hackett did the same thing to him.

Actually Mr Spragg did not say that he did the same thing to him. All he said was that he reported that an item hadn't been received. Mr. Spragg's post actually leads me to believe that no paypal claim was filed in that case.