If you do some searching there are tons of PayPal nightmare stories just like this one (This is a real story):
“I had my PayPal account closed recently. I had the account for about 12 years and had never done one thing against policy or rules. My wife responded to a company to do drop shipping and she got scammed out of hundreds of dollars. PayPal closed my account just because we had the same address! Each of us maintains our own bank accounts and have separate computers and have for years. She did no wrong and she was shut down by PayPal in addition to her being scammed. AND PayPal closed my account when there were 0 infractions in my account – just because they noted the mailing address.
The both of us have talked to PayPal on the phone numerous times. We have been told conflicting information and have been treated very rudely by most PayPal reps – although several were very polite and tried to feign being helpful. In the end there is no recourse. Today I was literally told – “You are welcome to look around for another payment processor…” The bottom line is that they do not care. I told the guy on the phone today that he was just doing his job and watching the clock for his breaks and quitting time and had no real concern for me at all.