Not so much true unless you use paypal on ebay. Buyers do not have the same rules as they do on ebay.I have used paypal for payment for transaction over 5K off craigslist, money went straight to my bank account les 2.9% fee.
Paypal can - and will - hold money if there is a dispute. If you’ve already pulled the cash to your bank you’re OK at that time, but as long as that dispute is still open, they will hold any other funds up to the disputed amount.