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Work Delivered, But No Payment!

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A terrible experience for me here. I delivered my work and just as 4 days were left for it to clear, it vanished from my 'delivered' list and the order got 'cancelled'. This order was worth $20 and i worked hard for it. I asked the fiverr guys, they said it was some paypal dispute and the funds were refunded back to the buyer. They asked me to contact the buyer and only the buyer can solve this problem. I tried this but the buyer is not responding (why would he?, he's already got the work free of cost). I invested lot of hours in it and $20 is not a small amount to loose like this way. I feel really cheated.
Fiverr still can't explain why
1) The buyer was allowed to do transactions if there were some paypal disputes going on with his account?
2) Fiverr collects money from buyer and gives it to the seller. When the gig was already delivered, why did fiverr give it back to the buyer instead of locking the funds with them itself?
3) Whats worse, i didn't even get any notifications regarding this. Fiverr has notifications regarding everything, but i didnt get anything on this. It was just a routine checking, when i noticed all this. If i hadn't noticed, this would have gone under the carpet.

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