Canclled order - refunded through PayPal - Reminder Keeps saying Paid -ship now

[kollectorkevin]

I had a problem with an order and the sale was cancelled by mutual agreement. I immediately refunded the amount through PayPal. Now the little reminder bell on ebay keeps telling me the item is paid for and go ahead and ship it.

If I go to "cancel order" ebays says it will automatically refund the money, which I already did.

How do I fix this?

Will it count against any defect rates for shipping?

Thanks