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Yep. She got me, too. I opened a case and I checked for a thread here yesterday about her. I've been looking at the shop for the last two weeks waiting for someone to leave feedback and was starting to have suspicions when, after about 40 sales, there was no feedback.
She got me as well, I bought two. This is the absolute worst feeling, I was so excited about those ponies, but should have remembered that if something seems too good to be true, then it probably is.I escalated my case with Etsy last week, but no response yet. I paid with a card (not paypal), so I filed a dispute with my bank at well.
Sounds as if this may be something that may get turned over to police if people aren't refunded. So I would definitely file a case/complaint through both Etsy and PayPal.