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Have I just lost £400?

Hi,
I've been a member for a while but more of a reader rather than a poster, I was hoping that someone could please give me some advice as I can't find a similar problem on here to find the answer.
I bought a wedding dress for £400 which was advertised on https://www.preloved.co.uk I paid the seller for it via paypal with my natwest credit card. The dress arrived this morning in a black rubbish bag, it has several rips, tears, holes and stains on it, there are all 62 missing crystals on the dress. I feel totally sick about this.
I have contacted the seller again but of course no reply.
Have I lost my £400?
Will my credit card protect me even though I paid through paypal?
What can I do? Please advise as it is a lot of money for me to lose. I thought I would have been protected but I read somewhere that credit cards don't pay out if you paid by paypal? Is this true? Then would you have to make a credit card claim against paypal itself then? Many thanks Kim
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