It's often used in contrast to being upset, for example:
* "Despite the loss, he seemed not upset at all."
* "I was worried she would be upset, but she was not upset by the news."
It's important to note that while "not upset" is grammatically correct, it might not be the most descriptive or nuanced way to express someone's emotional state. There are many other idioms and phrases you could use depending on the specific context, such as:
* Calm as a cucumber
* Unfazed
* Taking it in stride
* Not bothered
* Perfectly fine
* Unaffected
Choosing the right phrase depends on the specific situation and the intended meaning.