L3 IT here. I deal with stuff like this at a fortune 500 company for a living.
A lot of the recommendations here are good, some are redundant.
To answer your questions.
- "Do you guys think my entire laptop has been hacked? If not how did they access both my Amazon password and Paypal accounts?"
This is possible, there is a number of ways they could get access to both of these things, the most likely is a form of malware.
- How can I fix my laptop and make it safe again?
Don't waste your time with virus protection.
-- step 1 take your computer offline
--step 2 re-install your Operating system, can usually be done yourself, or can be done pretty cheap at most tech stores.
--3 reset ALL of your passwords. Literally. all of them. Do not save them in chrome.
- How did the hacker spoof his location come to my city and login?
VPN, they aren't uncommon.
- Why did i not get any text messages or emails about my paypal account closing?
Because paypal has the single worst fraud protection service on the planet......
- DO YOU THINK I WILL GET MY MONEY BACK?
I will not offer you any guarantees, any one who does is irresponsible. However based off what you have said it should not be very difficult for your bank to be able to trace this as fraud.
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As for remember your passwords, in this day and age if you live somewhere that you can keep stuff physically safe, paper is often the strongest password protection system on the planet. Hackers aren't walking in to your apartment to steal your notebook.
This requires personal responsibility and can be a risk depending on your lifestyle.
Password managers aren't a bad option if you have issues remembering passwords, but I personally dislike them.