Figured I should update this rather than leaving it hanging.
PayPal put a hold on and then removed the transaction in question, canceled the debit card and is issueing a new one. I guess it's taken care of but neither I nor PayPal seem to know who the charge was actually placed by.
Dealing with failure is easy: work hard to improve. Success is also easy to handle: you've solved the wrong problem, work hard to improve.