I had the same issue; all email(gmail) from paypal was in my "trash" folder. In my case, it turned out that some malware had set up a gmail filter with the rule: any incoming e-mail with the word "paypal", move it to the "trash" folder. If something similar is happening to you, check your e-mail client for active filters or rules that are redirecting your e-mails. Run a malware scan ASAP!
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