Added handling for paypal reversal and refunded statuses. Closes #198.

classes/gateways/gateway-paypal.php

@@ -389,6 +389,11 @@ class woocommerce_paypal extends woocommerce_payment_gateway {
 		                // Order failed
 		                $order->update_status('failed', sprintf(__('Payment %s via IPN.', 'woothemes'), strtolower($posted['payment_status']) ) );
 		            break;
+		            case "refunded" :
+		            case "reversed" :
+		            	// Mark order as refunded
+		            	$order->update_status('refunded', sprintf(__('Payment %s via IPN.', 'woothemes'), strtolower($posted['payment_status']) ) );
+		            break;
 		            default:
 		            	// No action
 		            break;

readme.txt

@@ -102,6 +102,7 @@ Yes you can! Join in on our GitHub repository :) https://github.com/woothemes/wo
 * Prevent checkout being submitted twice
 * Made order notes optional
 * PayPal standard stores payer email address
+* Added handling for paypal reversal and refunded statuses
 
 = 1.2.1 - 10/11/2011 =
 * Reworked downloadable and virtual products - now variations can be downloadable/virtual too making it more flexible