I'VE WON THE PAYPAL DISPUTE.
"After carefully reviewing your case, we've determined that you'll be
eligible for a refund (including handling and shipping) once you've
returned the merchandise to the seller."
I actually wasn't expecting to win with PayPal. I never had a chance to submit the screenshots that prove DBNY never said "rug yarn" until after my claim was filed. I did submit them to my BBB claim, which I'll close as soon as I can, of course making note if possible that it's only being closed because PayPal has sided with me.