I'm having a similar problem. Were you able to figure this out? I sell one of a kind items so it's a big problem when the sold items are not automatically listed as "out of stock". When the order is cancelled (even though they actually did pay through paypal) they are left as available and someone else can buy it. I've double sold several things and I don't like to have to tell customer they can't get what they want (not to mention having to refund their money).
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