IPhone 5 AT&T order cancelled or what?

So I ordered an iphone 5 16gb from at&t on the 14th for 199 dollars, but today (oct 19th) when I come home and get on my computer my paypal tells me that the 199 dollars that was pending has now expired and I got the money back and the order isn't on my at&t account anymore. So I call at&t and they tell me the order isn't gone, it's still in their system and is being processed, I called twice and they both told me the same thing. But what I don't get is why did the money on paypal ''expired'', they told me that they would withdraw the money when they ship the actual phone. But still, why would it go from pending to expired. Because technically they don't have the money when it's ''pedning''. I'm asking because I really want the iphone 5 and I would hate for it not be delivered because at&t messed up.

How did PayPal respond to your complaint?

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