Hmm, that's quite sad, though if I'm fully honest I had kind of expected something to fuck up at some point. With all the negative comments regarding PayPal, all the experience I've had with them has been positive, I've sold things on eBay where the buyer had turned out to be using a credit card fraudulently over PayPal, and they had backed my payment despite the credit card company getting refunded. From a developer standpoint their API's are excellent and can provide small businesses with means of credit card payments, I've never before had a bad experience with using PayPal, but that could be simply because I'm over cautious.

Bit of a disappointment here, but shit happens, at least it wasn't too much money lost.