I received a similar email 3 hours ago. I had just woken up and almost clicked the 'cancel transaction' link. Mine was for a Nikon coolpix which cost 100 euro and shipping which cost 78 euro. They could have at least tried to make a believable email. Also, you'll see that the URL for the 'cancel transaction' link doesn't go to paypal's domain. Instead of clicking the link in the email, you can log into paypal yourself and see if there have been any transactions made. I'm sure you'll find that there haven't been any.
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