I sold bitcoin on the Ebay for a week and used the PayPal system to accept payment. Once payment hit my PayPal account I assumed the transaction was protected and sent the bitcoin to the buyer, I was wrong.... It's a scam. The buyer is not the authorized eBay account holder. Once you send the bitcoin to the hijacker they abandon the account and the authorized account holder submits a dispute. PayPal then pulls all the funds out of paypal and reviews the dispute. Since bitcoin has no tracking or a way to reverse the transaction, PayPal will not take responsibility for these types of sales.
PayPal's official response is "We are notifying you that a payment you received was made without the account holder's permission, or was the result of a transaction error."
Don't be scammed. Don't accept payment for bitcoin from PayPal.
