Whats your problem please give more details , why they have cancelled your transaction and why it is realted with hideip?
You need to tell us your story in brief as don't know whats the relation between xoom and hidemyip BTW whats the reason xoom given you after cancelled your transaction ?? DON.
Mostly Indians use Xoom to transfer funds to their bank from paypal. I dont know why they are still using Xoom, while paypal transfers funds to mostly all of top Indian banks so easily.
Answer : Simple answer to your question : Well HideMyIP kind of IP hiding stuffs are easily detectable and they can easily detect your real IP , they are mechanism which these websites implement so you can't fool them. So answer to your question , What you are experiencing it expected to happen. HideIP is for websites which are run by individuals , But don't expect professional owners of XOOM, Moneybookers or Paypal to bypass them