A subdomain in wordpress can be set up in two ways. Either as subdomain.mysite.com or mysite.com/subdomain/. If you have installed wordpress multisite, then the admin is called network admin, you can add sites and you have the possibility to network activate plugins and more. If you have one site called mysite.com/store/ and another site called mysite.com/fundraising/ (where personal fundraiser is activated), then the paypal return-url has to direct to mysite.com/fundraising/ and not mysite.com or mysite.com/store/.
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