Hi there barklayrisa,
Yes Cancelled would mean the funds have not come through to you. Check your PayPal balance as per the below and if you have not received this payment then do not send the item.
You can view your running balance by following these steps:
Go to www.paypal.co.ukand log into your account.
Click 'History' near the top of the page.
Click 'All activity (with balance)'.
Your running account balance is shown in the Balance column.
Siobhan
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