I think Paypal didn't protect you from fraud, not because there was a confirmed address (as you noted), but because you didn't send it TO the confirmed address. Think of it like this; if you were in possession of a stolen credit card, you certainly wouldn't have merchandise bought with that stolen credit card sent to the rightful credit card holders house!

A bizarre murder happened in our area a few months ago - a teenager used a stolen card to purchase grow-lights for his marijuana operation. He had the lights sent to the house of the rightful owner of the card, as the property was a construction zone, and he thought he could just swing by and pick it up without anybody noticing. Unfortunately, the lady was there in the on-site camper; the teen & her got into it, and the lady ended up strangled/knifed or something...