All Orders posting as "cancelled" instead of "pending"

Can’t figure out why this is happening because everything was working perfectly before. When orders come in they are all registering as cancelled (so no notification email sent to me or buyer) rather than pending even though the paypal goes through. I get the email notifications from paypal so that is all working fine. Any ideas?

Thanks in advance.

http://wordpress.org/extend/plugins/woocommerce/