Reply To: Payment via [paypal] short-code not updating reservation

What does the IPN log on paypal say? Any http status?
Do you get an error mail? If not it means that the IPN script doesn’t even get called.
To be honest I haven’t tried it myself as debugging gateways is very time intensive and you can only do it from a online server. But now I don’t see a reason for it anymore, so I’ll have to make my own tests. Hopefully I will find the hour today.