If anyone ever ask me to send payment as a gift I tell them deals off.
It's one thing to ask someone to cover the PayPal fees, but to ask someone to give up rights to dispute a problem.... Major sign of something bad going down.
Hopefully your credit card company will help out but I don't see how it's going to work. They will refund your money but once they do research and see you sent money as a gift. That's something you agreed on. I just don't see the credit card siding with you on this. They will recharge you.
At least it wasn't a high priced item.