My wife put trust in somebody to give his "associates" money via PayPal pay for his "broken phone"

@Jessmari he first asked for USD $500 which she gave him via PalPal transfer and told me a few days later. His name is Mario Zelaya and he is an anti Trudeau government TikTok guy but I suspect the scammer is using his identity. She told me about the $500 and I was pissed asking her why she would give a complete stranger money! She said now the guy asked her to transfer smaller amounts to his associates which he would pay back and then he said I'll need to transfer $70K first to your account and pull out $40K and you can keep $30K and that's when she told me the entire story which I'm still not understanding how she could fall for this! the guy is still asking her for $1500 which he says once transferred he'll put the $70K in! I told her hell no not to do that as he'll reject the transfer and she'll be on the hook to pay back the $70K!