Thanks for your report.
I got this report from one user who tried to donate to my project. And I was able to verify his claim.
When on donation form, after one specifies donation amount, one can choose either to login or create a new PayPal account in section "Don't have a PayPal account? Use your credit card or bank account (where available). Continue". After clicking Continue link, one gets to a sign up form. No matter what country one selects (Canada in this instance), the "State" drop down menu still appears with list of US states. One cannot submit a form without selecting a US state. Interestingly, when no state is selected, while Canada being selected for a country, error message reads "Province: Please enter a valid Province.", although there's no Province field visible.
I'd provide a screenshots, but there's no way to attach them here.
Thanks.
Martin Prikryl