Item paid for, shipped, and seems lost in transit. Am I covered?

[CrossContempt]

Hi, first time using the community forum, so sorry in advance if I mess anything up.

I purchased an item on eBay on May 26th. The item was sent out on June 1st, with tracking through USPS. After June 5th, it has no further tracking information. This is the exact tracking info:

June 5, 2021
In Transit, Arriving Late
Your package will arrive later than expected, but is still on its way. It is currently in transit to the next facility.

June 1, 2021, 5:55 pm
Departed Post Office
ISLAND PARK, NY <removed>

June 1, 2021, 5:03 pm
USPS in possession of item
ISLAND PARK, NY <removed>

June 1, 2021, 4:30 pm
Shipping Label Created, USPS Awaiting Item
ISLAND PARK, NY <removed>

Well, it's now June 23rd, and I still don't have it. I've contacted USPS, and while they can't outright say that they lost it, every agent I'd talked to has confirmed it. I paid a fairly decent amount for this item, and would be out a significant amount of money.

Will my purchase be covered, since the item is lost in transit? I've read a few people saying that if the seller can prove that they shipped it out, that I'm out of luck. And others say if the seller can't prove proof of delivery (which they can't), then I'll be okay. Either way, the seller has been radio silent and has not really helped through this whole ordeal. I have a claim opened up with PayPal at the moment, but I want to know what to expect, and if I'll be covered under their protection policy. 

[kernowlass]

@CrossContempt 

How do I open a dispute with a seller when a purchase goes wrong?

You can open a dispute in the Resolution Centre of your PayPal account within 180 days of payment if:
•You don’t receive the item OR service
•You receive an item but it’s significantly different than the description on eBay or on the seller’s website (or you receive a totally different product).

By opening a dispute, you can communicate directly with your seller to work out a problem transaction.

If you reach an agreement with the seller you can close the dispute. If you're still not happy with the result, you can escalate the dispute into a claim. Paypal will review the claim and decide on reimbursement.

These steps apply to Personal accounts. If you have a Business account, please log in to see the steps that apply to you.

To open a dispute:
1.Log in to your PayPal account.
2. Click on the transaction and use the resolve a problem option at the bottom of that details page.

Note:
•Generally buyers must wait at least 7 days from the date of payment to escalate a dispute for an item not received
•Where an item has not been received, please ensure you have given the seller enough time before opening a dispute

Do not close the dispute until you have a refund or your item.
If a seller states that they can't refund until you have closed the dispute don't believe them.
Escalate the dispute to a claim within 20 days (before it times out), if you need Paypal to get involved.

If you lose because the seller provides a fake tracking number then post back here for more advice.
If the item arrives and its not what you ordered / not as described then make sure you change the dispute quickly from non receipt. If the dispute times out before you can change it then contact customer services to open a second dispute for the new reason.

Activate the below link in case you have to return the item at Paypals request (or the correct one for your country as this is the U.S link).
https://www.paypal.com/us/webapps/mpp/returns

If that does not work then if you funded your paypal payment via a card then contact your card issuer and see if they will issue a chargeback.