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Wow - what did I screw up here?

Background...

I had a non-paying bidder; she did not respond. I waited 8 days and went through UPI, she never responded. She ended up getting kicked off eBay.

She emailed me twice, asking me to accept her money and remove the strike.

Now, I got an email from PayPal saying that she paid for the item. And then another note from her, asking me to send them item and remove the strike. I don't know how she was able to pay!!! What did I do wrong?

I don't want to deal with her, so I'm planning on sending an email telling her that the item is no longer available and refunding her money.

Does anyone have a better idea of how to deal with this, before I go through with it?

Thanks!!

Roxi
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