"Require Confirmed Address" stopped working

For my store using Express Checkout module I have "Require Confirmed Address" set to yes. However I am seeing orders from unconfirmed addresses.

The log from debug mode shows (address info and IDs removed)

Code:

---

(live transaction) --> https://api-3t.paypal.com/nvp
Request Headers:
Array
(
    [0] => Content-Type: text/namevalue
    [1] => X-VPS-Timeout: 45
    [2] => X-VPS-VIT-Client-Type: PHP/cURL
    [3] => X-VPS-VIT-Integration-Product: PHP::Zen Cart - WPP-NVP
    [4] => X-VPS-VIT-Integration-Version: 1.3.8a
)

Response:
Array
(
    [TIMESTAMP] => 2009-12-09T20:49:30Z
    [ACK] => Success
    [VERSION] => 3.2
    [BUILD] => 1105502
    [PAYERSTATUS] => unverified
    [ADDRESSSTATUS] => Unconfirmed
    [CURL_ERRORS] =>
)

---

Why it is allowing this?