I think what's going on here is that PayPal sends out an optional "high risk" flag that most merchants either don't use or ignore, but Nexon pays attention to. If your location as determined by your IP address isn't the same as your billing address, you're "high risk".
IP addresses can only be used to locate you approximately. They're allocated in blocks to companies and service providers, who then allocate them to their subscribers when they connect. If your ISP is set up so that you're actually being routed through some large network center elsewhere in the country, you could look as if you're several states away from where you actually are based on your IP address. For instance, when I'm at work it looks as if I'm in Colorado when I'm really near San Jose because Colorado is where my company maintains its main hub.
And this can change "behind the scenes". You can't really know how your ISP is operating, particularly if it's a bigger company. But this can happen even with smaller companies depending on how their own upstream connectivity is set up.
So there may be no fixing this unless you change ISPs.
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