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You issued a chargeback and not a proper refund through Steam.
That's why.
Reverse the chargeback and contact Steam support. You have 9 weeks to get this done or the restriction might be permanent. The paypal might be blacklisted permanently no matter what you do.
I'm looking on PayPal but I can't find a way on how to do it?
Your Paypal account will be blacklisted and you can never use it again on Steam. You might be able to create another Paypal account to use on Steam unless they block Paypal completely on your account.
contact Paypal and tell them to reverse the chargeback, after you have confirmation the chargeback has been reversed inform Steam support.. if you fail to do this, Steam can well within their right to perma-lock your account.. also, they are likely to blacklist your paypal account..
in the future if you want a refund, do it within the refund system. and if they say no, accept you aren't getting one and don't issue a fraudulent chargeback