My PayPal account was hacked into a few years ago along with several other Ebay accounts, and it was hushed up by Ebay from my understanding. My checking account was drained of everything and it took me three months to get my money back from PayPal. They treated me like I was a criminal, when I was the victum. I will never use them again for what it's worth. I avoid all auctions that only take PayPal as payment.
That was my experience.