Really need some help - monkey120

Link to scammer's Sythe profile: http://sythe.org/member.php?u=345572

Briefly explain the trade:
I traded my WoW account for his Diablo 3 account. Things went smooth, till 3 days later he hits me up on skype saying the info has been changed. I didnt recall, the owner I got the account from didnt recall. So I start looking around and he's been trying to trade the druid. Already I shouldnt help him since we agreed we wouldnt retrade since that just leads to problems. But I attempt the get the account back, no luck. So then I talk to the owner, turns out monkey went behind my back before telling me the account was changed and talks to the owner, trying to get more info outa him like his ID and such, which me and monkey never exchanged in the trade. (I have the ID for the druid account, but he couldnt provide one for the diablo account). The owner of the druid account agreed to call blizzard, suspicious activity on the account, 3 IP changes in a short time, bottom line is the accounts gonna be banned. So while we're trying to get the account back, I learn that someone charged my paypal with a transfer (I called paypal, we removed blizzard as a merchant and disputed the transfer payment.) I think monkey traded the druid, tried playing us to get it back for him. And now he's attempting to recall the diablo 3 account, when he agreed to wait for the recovery form the owner sent in for me.

Ive added the people he's been in contact with publicly who wanted to trade for the druid account, just waiting for them to get accept my add. This guys sketchy as hell and somethings not right.

I'm prepared to take the loss on the druid account if its banned since I got no problems with the gent who sold me that, he's been more then helpful. But if I find out this guy traded the druid account, I don't have any reason to return the diablo 3 account. He's already failed at recovering it, it just made me verify the email and change the password. Well, its obv he traded the druid account if blizzard said its jumped around 3 IP's

Could a mod give any insight on what I should do?
How they scammed:
Proof that you were not talking to an impostor:
Trade screenshots:

 

if you feel you were scammed then file a report.