[tgtweak]

They've screwed countless group buys by locking the organizers account and freezing funds after "detecting" unusual spending (ie receiving money from a bunch of other users in a short period of time). Same thing happened to a friend organizing a group gift for another mutual fiend. Unethically, PayPal kept receiving funds to the account after they froze it.

[KozmoNau7]

They screwed over Something Awful as well, due to a fundraiser for the victims of hurricane Katrina: https://www.somethingawful.com/news/paypal-fiasco-summary/

They simply froze the donated funds and kept them in limbo while forcing the operater of SA to jump through ridiculous hoops in order to unfreeze the money.

Don't use Paypal for any sort of fundraiser. Ideally never use Paypal for anything, ever.