If you request a payout to an account that is unpayable or doesn’t exist in PayPal, then it will sit pending waiting to be claimed. During this period, since the funds are technically transferred to you, it will display as “Paid” on itch.io. If you do not claim it in time then PayPal will reverse the transaction and the payout will go to “Failed” state, and the funds will go back to itch.io. You can try requesting payment again but please make sure you have a valid and functional PayPal account connected.