Failed Order Cancellation

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I am having trouble with an order that I recently cancelled. A customer 'paid' via Paypal Express only the payment did not go through, after multiple failed attempts at reaching out I attempted to cancel the order. 

First I restocked the order

Then, I cancelled the order

This is only the 3rd order on my store, the first two have been sent out. Now my store is showing a negative balance of the order and it says that I sent a refund notice to the customer, which I did not. The cancellation is still pending and yea, my store is negative. Can someone please help! I cant delete the order either smh.