Credit card disputes are always handled this way. The amount will sit in "limbo" until the dispute is resolved.
I recommend you immediately pull out any evidence this transaction took place and was not fraudulent. Having the following will help:
1. A signed credit authorization form
2. Copy of receipt that shows card was dipped/swiped (helps establish customer was in-store)
3. Copy of drivers license (I do this for large transactions)
4. The serial number/sku of the item (assuming it's a physical good)
Basically the burden of proof lies with you on proving the transaction takes place. It sucks but it's the risk of taking credit cards. At least you don't have to sit on the phone with Paypal and wait 2 months because the customer decided to never respond.
