Failed echeque, can't cancel order

A buyer paid by echeque 2 weeks ago, but the echeque failed. Paypal says it's "cancelled", which means "The payment was cancelled and the money was returned to the sender's account" but eBay still says the item is pending through Paypal.

 

Paypal advised I contact the buyer for alternative payment methods, which I did, but got no reply. The problem is there's no option to cancel the order or open an unpaid item case, because eBay says it's pending.

 

Any suggestions?