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Transfers from bank accounts are never instant, that is why when you buy something paypal always credit the seller/recipient upfront for you and paypal take the wait for the funds to transfer to pay them back again, this is so you get any item without delay.
Can't see how its paypal fault you didn't have a secure password to protect not only access to your phone but also access to your paypal account on your app or you allowed someone access to it. Think you need to take responsibility for your own actions on this one.
Paypal can't cancel completed transactions and this one completed as soon as you made it, paypal then waited for the bank transfer to process to pay them back again.