The Paypal claim status updated to them requesting information from the seller.
I called to ask them that and update them on a bit of the situation.
They said they notified the seller, Lithis, that the package is out for delivery and that she needs to go get it.
I informed them of the following:
-She seems reluctant to make an effort to pick up the package from her old address judging by the conversations we're having.
-A DoA member from Italy came forward today to help me with Italian translation and she believes that Lithis is just using a English translator without checking the results. (This member offered to translate the facts of the case for me and I will update when that is ready, along with the English counterpart.)
-Her two addresses are only about 10 minutes from each other according to Google Maps.
The Paypal agent assured me that I will still get my refund if she does not pick up the package from her old address and even if it ends up being sent back to me. The agent said that the case data shows that they tried to resolve the address issue without any response from her. They also assured me that I have done everything correctly regarding the case and it's possible that this whole mess will be done with by the end of the week.
As for the package, it's status is 'out for delivery' for the 2nd time. I'm unsure how many attempts it will make? I believe it's 3 attempts for a US package here, however unsure for Italian post.
I've seen a stamp on packages I've received that read "1st attempt: date, 2nd attempt: date, Final attempt: date".