[jmjj215]

I talked with one of the original 12 employees of Paypal (he's no longer with them, but man is he loaded) and he says that type of stuff happened early on because they were so worried about fraud (it was rampant, being new and everything). He says they freeze the money from the sale in question, not your entire account now.

They've improved the system much since then. I've never had a single problem with them. But again, don't put all your eggs in one basket.