Issue Refund through PayPal and Lose Membership Access

Hello. Quick question. I am using Membership 3.5.0.8, the PayPal Standard Payment gateway, and the mode set to Serial.

I am testing my site live in production. I just signed up for a membership and was successfully placed in the appropriate subscription.

I then logged into my company's PayPal account and issued a refund to the membership I just signed up for.

When I tried to log back in to the subscription I was just refunded for, I see that I was automatically moved out of the subscription I paid for, and got automatically moved back to the default subscription for registered users (which I set in Membership Options) as if I never made the purchase.

Is that the expected result after being issued a refund?

Thank you.