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I really would just like to start over, but how the heck do I now cancel the whole transaction without getting negative feedback?

Just cancel the transaction. I believe the buyer may be able to leave you feedback still, but at that point you contact eBay and dispute the feedback. 99% of the time you will win the dispute for good reason. They will have the information that the buyers Paypal address isn't confirmed and they can also read messages exchanged between the two of you. So if this guy lives outside of the U.S., and he wants you to ship to an UNCONFIRMED address within the U.S. that is a red flag to eBay. You would win the dispute. Just send the guy a message saying you do not ship to unverified Paypal addresses. I doubt he'd leave negative feedback if he was trying to scam.
 
YOU MUST REQUIRE A SIGNATURE IN ORDER FOR THE SELLER TO BE PROTECTED!

SIGNATURE CONFIRMATION IS A MUST, but otherwise you are good to send it.
 
Sounds like it could be a case of identity theft. Not yours, but someone else's. My identity was stolen several years ago and linked to a house in Durham, NC. Dozens of credit cards, phone lines, etc were opened with my name and SS# (though they so kindly made me 2 years older). Even IF you get the funds, they are very likely using someone else's name to pay you. I don't know why, I just got a feeling about it when I read it...could be mistaken, but it's actually very common and what you describe is very suspicious. I don't ship out of the country or accept payment from out of the country unless I know the person in some way. And to reiterate...unverified address? No-go!
 
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