Insufficient fund question

[Pf14]

So I made a payment on eBay and I guess I didn't have the funds. A couple days ago I went into my bank account and noticed it was in the negative owing for the product so I assumed okay nice my bank just overdrew it , PayPal said complete eBay said complete and the guy I purchased from said he recieved funds 4 days later I get an email saying insufficient funds and it would be debited from my PayPal account. The cheque was returned and I have an NSF on my bank account. eBay says to repay but the person I bought from says he recieved the funds. I do not have a negative owing on my PayPal yet ( email came at 10:38AM and it is 12:17PM). What is going to happened ?

[kernowlass]

@Pf14 

Transfers from bank accounts are never instant, that is why when you buy something paypal credit the seller upfront for you and paypal take the wait for the funds to transfer to pay them back again, this is so you get your item without delay.

Takes several working days to transfer as Paypal use the slowest (cheapest) transfer option BUT funds normally leave your bank account from a few hours up to a few days later.

[Pf14]

So when the merchant says he's recieved the money , PayPal has fronted it to him , and despite it saying cancelled on my PayPal history , they will just retry again ? Or how is this working? I don't have a negative owing on my PayPal account. I'm confused because the money was taken and now returned and it says cancelled on PayPal and to repay on eBay but I got a NSF on my account and the merchant says he's recieved money. The issue was I accidentally clicked the wrong method of payment and I don't actually get paid till this Friday , it was supposed to be credit card. So as long as it's all good there still and he sends my item today I'm happy haha