unable to refund. Paypal fee's prevent.

[jam2ja]

1)- sold goods 120 pounds. Through ebay.

2)- goods were damaged. Decided not to send.

3)- canceled the transaction through ebay.

4)- paypal was unable to refund, as my account had less than 120 pounds. Because paypal fees were taken out.

I thought when transactions were canceled that fee's were reversed?

What should i do? Send funds to my account?

Seems a little unfair? This is the new "cryto" face of paypal?