What exactly do you mean by "get message to say email was typed incorrect. "?
Did you get a bounce message from a server saying the email address doesn't exist? If so, I'd be very surprised if someone claimed the money.
Another option might be for you or the seller to register the misspelt email address yourselves, set up a paypal account and grab the money.
Ultimately, it's the seller who is responsible since they gave you the wrong email address. What do they say?