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Gosh you were lucky, if that mis-spelled email address was valid to another person you 'may' have lost your money !!
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.