Were you fully signed up and verified for the new Managed Payments? You would have had to provide a passport or drivers licence. It started rolling out from July 2020 and all sellers would have had to change over. There is no longer Paypal for sellers, but all nett funds are sent to your bank account.

Until you were fully verified, you wouldn't have been able to receive payments.

You should have cancelled the transaction though, even though the funds were on hold, but it doesn't seem like you did that?