Hi!
Yes, right. I experienced the particular error twice with my refunded funds. However, in the third transfer, the funds in Paypal were sent but without return. When asked by the bank concerned (such as a notification suggestion from PayPal) there are no incoming funds from PayPal.
According to the bank at my place, things like this are not just me.
To note, in Indonesia, PayPal was blocked by the government of our country because it often hinders its users. Even though now they say it has just been unblocked, there are still lots of user complaints happening.