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If you were able to cancel a payment it means the seller made a mistake with the email address on their auction and could not accept your payment.
Luckily you could cancel, so when you cancel a payment those funds can't do a u-turn > they have to process through to paypal who will then either return them to your funding source (if you paid with a debit or credit card), or credit your paypal balance (if it was funded from your balance or instant bank transfer), but that takes a few days and sometimes up to a week.