Fun fact: The horror that is PayPal came from the same guy who gave us our hope for the bright future of commercial spaceflight. PayPal has vertically integrated every step required to stiff you. They can do it safely and reliably, but a public mishap like this one may cost them.
I've been on this forum for a long time, and I'd estimate that a new Paypal horror stories surfaces once a month. There's no shortage of them. Every one of those costs them something, no doubt, but not enough for them to knock it off.
Unfortunately, the PayPal of today is a far cry from Peter Thiel's original vision. It was supposed to be an extra-governmental currency more akin to something like bitcoin, until Ebay got ahold of it. http://www.amazon.com/exec/obidos/ASIN/0974670103
