I'd like to hear a little more detail than "$5k lost to paypal". When PayPal "decides you are scammers", they hold your funds for 180 days like any other payment service provider (as Visa and MasterCard operational regulations say they should, 180 days is the maximum time most banks allow for chargebacks)... then they return the money (less any chargebacks) to you. The money isn't lost, it's temporarily held.