Paypal are a nightmare to deal with!
I used to have a bank account linked to my paypal, so i could transfer funds out to it, but since ebay and paypal massively jacked their fees and I had a load of hassle with them (for no good reason), I cancelled this arrangement and stopped using ebay/paypal for all but ocassional small purchases.
Your’s is a case of fraud and so they should not be penalising you in any way! For what they now charge, they damned well ought to have a call centre with a regional number, so issues like this can be swiftly addressed. Their complicated system of stock Q and A’s is a totally lame cop out. Trading standards need to give them a kick!
They don’t deserve your business, so take it elsewhere.
Good luck!