Tell the buyer you will film the opening of the box at Paypal's explicit request so that should stop him trying to send you some rubbish. Film it by all means as well and this can be used with paypal to uncover this scam. And be sure to tell Paypal now that you are suspicious of this outcome so it is in their notes, and it will all line up that this is a scam and they will most likely find in your favour then.
If the watch is damaged however or not working then they will probably side with the buyer, but at least you have the watch.
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