I'm based in the UK and my UK buyer (Keighley, West Yorkshire) has his address country wrongly set to Malaysia. This changed the transaction fee from 3.4% to 4.9% because as far as PayPal is concerned it's an international transaction.
Unsurprisingly, PayPal states this address as being unconfirmed - where was the error checking in their scripts though? All that is needed is correct pattern matching on the postcode based on the country selected.
