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Has anyone sent money that they had in their paypal balance to a wrong email address, transaction completed, then went to person that you incorrectly sent the money to, they will not cancel/refund your money and Paypal advises they can't help you and sends you to IC3.gov to file a complaint????
Sadly as you used the friends / family option then you basically sent a 'gift' of money to someone.
Thats why paypal can't help you as you have no buyer protection because you weren't buying anything.
If you had funded it via a card they may have helped you but as it was your balance nothing paypal can do sadly.
If the email does not exist then it would be impossible for the funds to transfer to a paypal account as a paypal account is identified by the email address.
If you sent a payment using goods/services and its completed and you did not receive anything then open a dispute for non receipt of item.