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Are you taking the animal in for a necropsy? I realize they can be pricey, but to hold the seller accountable you'll need definitive proof that the animal was sick prior to entering your care, as the seller has an email showing you were happy with it upon receipt (Regardless of what you saw after that email, having that in black and white will likely be proof enough for paypal that you received your purchase and therefore the payment should stay as is.)
Again, not picking a side... but if we play "What if" (Which is cruel to do to someone who just watched a pet die, so I do apologise, but from a business point of view...). What if the cage had insecticide left in it (not saying it did.... but what if) and the dragon had a reaction to the toxins. I know insecticides result in seizures in cats and dogs, no clue about reptiles though...
Since there isn't a clear and definitive cause of the dragon's demise, accepting a refund less shipping may be the best option in your case, without having to pay for a necropsy.
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