That is typical.
I had an account for a long time as both seller and buyer with one negative comment in over 300 from a person whose money I refunded when they said the item did not work (immediately).
My account was hacked after not using it for almost a year by some kid in Spain selling a non-existent $9,000 jetski. I cancelled the auction but not before two people had wired money orders to Spain through Western Union for $5,000 deposits. Luckily, Western Union in Spain was onto him and did not transfer the money.
I learned of the fraudulent auction using my username when questions to buyers started to arrive. I immediately contacted ebay and all bidders to inform them of the fraud and did everything they said to do.
After doing all of that and contacting them numerous times they still suspended my account and I have not been back since. I felt their customer service was horrible and I spent hours trying to fix it. They did not even cancel the auction so I had to modify it so people would stop bidding on it. I did all the legwork and mailed it all to them and they did nothing but suspend my account.
Have not been back since and use amazon.com or yahoo shopping now.
My biggest issue with PayPal/Ebay is their customer service is all people who read from a script and simply are not fluent enough or not bold enough to try to REALLY understand the issue. Maybe the ones from the email are but the ones on the phone leave a LOT to be desired in terms of even comprehending the situation.
Almost every time I’ve spoken to someone from the Philippines or India, I feel like I wasted my time. (that goes for any CS call, not just PayPal or Ebay but credit cards also)