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Fine ....the world is unfair. One of us had to lose out financially and in this instance it seems (well, is) the party that made an error, didn't honour and cancelled a transaction hasn't lost out, whilst the person that did everything on good faith has. Anyway, it gets filed in the 'good to know' section!
Pasty_Spumante-
It's possibly also a PayPal related thing.
If it was a credit card then the shop could have authorised the payment but not taken it immediately. Then they'd have been able to just release the hold and nobody loses out.Possibly it doesn't work like that with PayPal and they take the money immediately to cover their risk. And passing FX risk onto every shop would stop a lot of them selling abroad, hence services like Paypal get in the middle. I know you know this and it's mostly just annoying.
duncs
You are being unfair here. The shop have almost definitely refunded exactly what they received.