Postgres.app won't start

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I am running Yosemite and have had the Postgres.app running with no issues for months. I started the app today and got this error

Could not initialize database cluster.
initdb: could not create directory "I": Permission denied

What could cause this to happen and what do I do to fix it?

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This baffled me for ages too. Turns out I had errantly typed while the preferences dialog was open which changed the data directory. Using 'default' fixed my issue.

Preferences