What's happening is during checkout, PayPal is filling out the "ship-to" address incorrectly. Because the problem was deemed to be minor in terms of numbers, information about this problem was never posted to the System Announcements board (where you would expect it to see first of all).
A spokesperson has confirmed that a "PayPal database issue" has caused a problem in a small percentage of eBay transactions that mixes up ship-to addresses". A few reports began surfacing late last week that eBay sellers were sending packages to the wrong users due to an apparent glitch.
PowerSeller Evan Prytherch said he bought a toner cartridge from another eBay seller using Buy It Now and using eBay's PayPal payment service. He said he was surprised to receive a call from a person he had formerly sold something to who had received his package in error. "It's a potentially very, very serious PayPal issue with a lot of very nasty ramifications," Prytherch said, adding that he wouldn't have believed if it had not just happened to him.
On September 3rd, a user posting on eBay's PayPal discussion board under the User ID mad_monkey_inc wrote, "Was going through my recent payment transactions and noticed that the last 4 had a ship to address that was not mine. The weirdest part is that the new address is confirmed. I have talked to Paypal service center and they are currently working on the problem, but they claimed the new address was being forwarded to them by ebay." Another user responded to the thread citing the same problem (http://forums.ebay.com/db2/thread.jspa?threadID=1000553683).
The only info we have from PayPal is a post in PayPal blog, saying that "fix is coming":
Our technology team is still diligently working to resolve this issue and we recognize the impact that it is having on our eBay buyer and seller community. We anticipate having a resolution very soon. Although the problem seems to be affecting a very limited number of transactions, we take this issue very seriously and are committed to making it right for those who have been impacted.
If you feel that you have been impacted by this issue as a buyer or seller on eBay – as seller you have sent a package that was not received, or as a buyer you did not receive your auction item – we encourage you to contact our customer service center. Our customer support staff is ready and equipped to handle your case on an individual basis.
Although eBay says this is only affecting "a very small number of purchases," EbayBlog.net highly recommend you to check your shipping address thoroughly when making purchases on eBay and sending payments through PayPal.
» See also:
eBay or PayPal Hacked? Credit Card Info of 1200 Users Posted on Trust & Safety Forum
Looking for Hot Products to Sell on eBay? Buy on eBay and Resell for Profit!
Stop Paying Absurd and Unreasonable Prices! Five Ways to Detect Shill Bidders on eBay