I'm having a hard time understanding what happened in your example. I'm pretty sure you have 180 minutes after you initiate a trade to make the payment and mark the trade as paid. Did the buyer wait too long to click the "payment made" button? Whatever the case, just stay in touch with the buyer and let him know the situation until it's resolved.
Yes, he waited to long and it automatically canceled.
Ended up starting a new transaction and just releasing escrow without payment.