Tracked item shows as being delivered to wrong city/state

I sold an item to someone with an address in Massachusetts. It was sent small packet tracked via Canada Post. On the EBay/Canada Post/USPS websites it shows the item as being "Delivered" in Austin, Texas. I know sometimes USPS uses old tracking numbers or an employee incorrectly put it as being delivered. The buyer has contacted me saying he hasn't received the item as it shows being delivered in Texas. Has anyone come across this before and if the buyer files a claim with PayPal am I out of luck. Hopefully the item still arrives and the buyer is honest.
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The item in question arrived in Massachusetts. This just shows that USPS must have entered the wrong tracking information in the system. Even though it showed being delivered in Austin Texas it was still on its way to Massachusetts. Rare but it does happen that the tracking information can be incorrect.
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