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Paypal seems to be in a security flux right now. I'm having similar problems with a totally different transaction with a different user where they held up the buyers acct due to security reasons. My deal is still on hold while we work out alternative payment methods.
Me and Usual loan money back and forth to each other as needed and he's a stand up guy. You should check with paypal to get the matter resolved to either release the money to you, or refund it back to Usual so he can then refund it to you.
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