"Artists Beware"

Well, it's good that a site like this exists to help warn others about these situations. It definitely sounds like an outright con to me. The fact that she is avoiding you and now trying the same thing on other people pretty much confirms that. I'm afraid as far as Paypal is concerned, you are right, you are pretty much out of luck for getting your money back through them if you sent it as a gift. At least be sure to always check off goods or services from now on, even if someone tries to talk you into using the gift option for payment. That in and of itself it a red flag to me. It shows someone is willing to be dishonest to save a few cents on a transaction fee, so who knows what else are the willing to do to gain even more.