Seller cancelled straight after I paid on eBay

[Underwood95]

So I won the auction at just over half the Buy It Now price. Then I get a message from eBay saying that the seller has cancelled the sale, minutes after I paid for the item. As I paid through PayPal I feel pretty secure but what do I do in this situation as my paypal has taken the money out and the seller has sent me a cancel request. On the page for the cancellation, I get two options along the lines of: 'I have not yet paid for this item' which does not apply for me, the second option is 'I have paid and received a full refund', this again does not apply to me. 

That was a summary of it but my questions are basically:

- What do I do next? What steps should I take?

- Does the seller have right to do this? (It's not like they started the auction at £0.99, they shouldn't start at a price they're not willing to sell at in my opinion)

- How long does PayPal take to refund me if so?

Please help, it was a significant amount of money for me and I need it back in my account as soon as possible!!!

[kernowlass]

@Underwood95

You need to ask on the ebay boards how the cancellation process works, i think if you cancel then you get an automatic refund BUT you need to double check on that first.

Secondly yes a seller is allowed to do so as long as he refunds you but you can leave appropriate feedback to warn others.