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Unfortunately the one downside to paypal is that they do not reverse charge backs, so you will need to find another form of payment for future purchases on steam.
Is it recommended i find a different payment source, or will it be mandatory ?
That payment method will be blocked by Steam and will not be able to make purchases.
Chat, did i mess up ?
Yeah paypal is well know for not reversing charge backs. Paypal will forever be blacklisted for use on your account now. You are going to have to use another method of payment in the future such as credit/debit card.
What you should have done when you noticed the error was to contact steam support first, they could have corrected the error. When a charge back is issued steam have to pay a fee. Which is why when a charge back occurs that payment method will be block until it is reversed.