Ebay cancelled transaction

[redjames1234]

Hi all. Ebay has cancelled a transaction, leaving me out of pocket. I'm the buyer not the seller. I quote the Ebay message below but have removed identifiers:

"The item you won is no longer available

Hello redjames1234,

We're writing to let you know that we've removed an item you recently won due to concerns with the seller's account:
*************************

It looks like you haven't paid for this item yet, and the seller hasn't shipped the item. Since we've canceled the transaction, please don't send any payment.

We wish you all the best on eBay and hope your future experiences are pleasant and successful. If you have questions, please click "Help & Contact" at the top of most eBay pages.

eBay still has lots of other great deals. Just go to http://www.ebay.co.uk to shop. We hope to see you soon.

Thanks,

eBay

Please don't reply to this message. It was sent from an address that doesn't accept incoming email."

Now-I paid for this item. Ebay tells me I haven't. The item was a popular one with plenty of good feedback. 

Anybody understand what's just happened?

[ruby*tuesday]

You bought from a Compromised Hacked Account. Your Money is safe with PayPal. After 10 days open an Item Not Received Case with PayPal. Find Resolve a Problem and scroll down to the PayPal Resolution Centre. Escalate the Case after 2 days but before 20.

Add in the Notes that EBay have Removed the Seller.

[redjames1234]

Thanks Ruby Tuesday.

Since posting, Ebay has refunded. The seller's account is still live and still selling the item. The seller is even described as extremely trustworthy by Ebay.

What may have happened is that the seller posted the item for less than s/he usually does and cancelled the transaction. If so, a simple breach of trading laws.