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Toys r us / my order has been cancelled

I ordered a toy online from Toys R Us for which I opted for a store pickup. After waiting for 2 days I got a mail saying the order has been cancelled. I had planned to give it as a Christmas gift for my nephew. When I checked with the Customer service got a response saying it is out of stock or not available.
My questions:
1. Why did your system allow me to checkout if you couldn't fulfill the order?
2. How come the product is still available for store pick up for a different price?

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