Yes, you do get to keep the funds if you go through with the transaction. Ebay and PP operate independently here. The listing was taken down by EB, but PP still received the funds from your buyer and considers it a binding transaction.
You can choose to either...
1. ship the item out. you will be allowed to keep the funds. the buyer can still file a pp claim.
2. cancel the transaction and refund the buyer, keep the item, and hope buyer doesn't leave a neg feedback.
Just be aware that whatever option you choose, the buyer will also receive a message also from ebay indicating the purchase they recently paid for was removed.
They may contact you about this inquiring what happened to their purchase, b/c in their mind they paid for an item and are expecting it to be delivered.
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