I have a number of personal and professional experiences with PayPal that has left me not wanting to work with them ever. They are NOT a bank and are NOT regulated as such. On one occasion they did exactly what they've done to you but to the tune of $1.2 million. They have not released these funds to my company OR to the people who paid us. After a year, we ended up suing them and they finally released the funds back to the people who paid them.
My mother has an Etsy shop and released a very popular new bag and they did the same thing. It took 30 days for them to release the funds. And because it was an advanced sale, she couldn't deliver the bags in the requested time because she literally didn't have the money to pay for the materials needed.
I don't trust PayPal. People have been duped by them. And it is only until you have an issue with them that you realize that they are crooks.
