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I'm sure there will be others facing the same situation in the future so just a quick update. I contacted Qantas via Facebook messenger and they had a look and confirmed PayPal had not been received (whatever they means). They left a note in the booking and ask me to contact their reservations...

Hey I know it's a long shot, but I'm in a very similar situation as you, received error when passing reward seats through PayPal but booking received with no ticket. What exactly did they do when you contacted them via Facebook messenger? I've contacted them via 131313 and they said it takes 10...