Cancel a sale but already refunded through paypal

Hi,
I am selling an item - someone bought the item and paid via paypal but didn't realise it was collection only.
I am not very experienced at eBay selling... so I signed into paypal site separately and refunded. Now I am trying to cancel it on eBay and it seems to be mandatory to process a refund (as in the box comes up and can't move on without completing) - but I have already done this directly on PayPal.
Any advice how I can now cancel the sale on eBay Please?
Thanks
Gemma

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