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I agree hence why I'm trying to figure out what could have happened.
Also even though paypal do not send the information to the merchant(wasn't sure on that so figured better safe than sorry with the way I addressed it), that information is still linked to the account (and present) and could hypothetically be accessed through a sniffer or skillfull hacking (it may or may not entail accessing paypal's user database which while hard to do without getting caught is not impossible in the least).
My best guess is user got his card compromised through some other means and its coincidentally timed with the other possible fraud. From a fraud standpoint though, if his info was not compromised from his paypal account (sniffer, etc.) then there is no possibility that the two are related, unless the OP's personal info was compromised some other way (have you recently had you credit card company or anyother company call and ask for some of your information; they normally will go with the someone tried to access your account or we need to update certain information). (unfortunately I'm only really considered to possess expertise on the card company side, merchant side I know a lot but obviously not all as I wasn't sure whether paypal even sent the info to the merchant or not)
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