on saturday, there was a guy from India bought a plan from me via paypal, 5 minutes after he signed up he asked me to set up the account ASAP. After I set up everything he UNsubscribe his plan, obviously I suspend his account, After he found out I suspend his plan he went to one of the host rating website and give my company very bad rate. Next time I won't allow some countries to pay via paypal.

He only unsubscribed from the 'subscription' though. Did you refund his first payment?

it's automatically refund because I've check on my paypal account the balance is still the same as before he join the plan

I've never heard of an automatic refund just because someone unsubscribes. That's a first. You sure you read your account correctly?

Maybe the account was setup before the PayPal transaction went through? Was there any activity on the hosting account? Setting up an email account and spamming only takes a few minutes. Maybe he didn't get to take advantage of the account for free like he planned?

You are reading your statement wrong. Paypal does NOT do an automatice refund just because a person cancels their subsctiption