why has refund counted against me

i sold an item a couple of weeks ago .i sold it as new it was an embroidery set .the buyer left good feedback but messaged me and said some threads were missing ..i refunded the payment through paypal .and told buyer to keep it ..it was for about £4. with the post cost ..now i have a cancelled transaction on my seller dashboard why when it was not cancelled and the buyer is happy has both the item and their moey back

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