I bought two items in August and have paid for both and received them.
In reviewing my Paypal account I notice that under the status column instead of being blank or showing shipped it shows 'cancelled'. Can someone explain why and what that means?
Unfortunately no one here has access to account info. What we can tell you is that "Canceled" means "you canceled your payment and the money was credited back to your account.
As that's not the case per your post, you would need to contact customer support with your concerns.
