[johnnysnow]

PayPal has been doing this sort of thing for years. I had a very beneficial relationship with PayPal in the early 2000's using them for both personal activities and business activities.

When they launched their service to function as a website payment processor, I made use of that as well and it was fantastic.

Then ebay bought them and and they were no longer interested in providing service to anyone that they deemed to be undesirable.

Over the years since then, anyone doing business through them could wake up one day and find that they were the next company / interest / whatever that they decided they didn't like and the story was all the same: held funds, lifetime ban, no discussion, no debate, no recourse.

While it's unfortunate that this particular group of individuals have been targeted by a bunch of jerks, this is known behavior of PayPal as a company. The long and the short of it is that anyone doing business through PayPal is doing business on borrowed time from day one, and it's been that way for over a decade.