PayPal failed eCheck change order status to Validated instead of Canceled

[fronke]

When the IPN callback from Paypal is coming back few days after an echeck submission, the order get a history comment saying that the IPN Failed but change the order status to Validated instead of Canceled

Preconditions

1. Magento 2.1.7, MySQL 5.7, PHP 7.0
2. Nginx Server

Steps to reproduce

1. Create an order and use Paypal to pay with a delayed payment (eCheck)
2. Order status is changed to "Payment_reviewed"
3. Paypal IPN callback is called on Magento website and returns a payment_status=failed (For example, there was insufficient funds on the customer bank account)
4. Magento is adding the comment "IPN Failed" and changes the status to Validated

Expected result

1. Magento is adding the comment "IPN Failed" and changes the status to Canceled

Actual result

1. Magento is adding the comment "IPN Failed" and changes the status to Validated

There is clearly a problem in Magento/Paypal/Model/Ipn _registerPaymentFailure() where the order is canceled. Invoices should be canceled before the order because the order cancellation cause a Validated status. So it's the exact opposite of what should happen and results in orders shipped without a received payment.

This is huge and was there already in Magento 1. I dont understand why it wasn't fixed earlier.

[m2-assistant]

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[github-jira-sync-bot]

✅ Jira issue https://jira.corp.magento.com/browse/AC-1002 is successfully created for this GitHub issue.

[m2-assistant]

✅ Confirmed by @engcom-November. Thank you for verifying the issue.
Issue Available: @engcom-November, You will be automatically unassigned. Contributors/Maintainers can claim this issue to continue. To reclaim and continue work, reassign the ticket to yourself.

[github-jira-sync-bot]

❌ Cannot export the issue. This GitHub issue is already linked to Jira issue(s): https://jira.corp.magento.com/browse/AC-1002