oh please don't bring the Notch stuff into this. FYI they were entirely justified with what they did. I administrate the Minecraft forums, there were (and still are) many legitimate complaints from people who paid for the game but never got access because minecraft.net is very poorly built[1]. When his account received millions of dollars in a tiny period of time with numerous complaints do you really think any legitimate company would just give him the money?
What they did in his situation was entirely justified and I'd personally suggest it was exactly what they should have done. I'm sure there are many times when Paypal have done wrong, but this really isn't one of them.
[1] http://www.minecraftforum.net/viewtopic.php?f=17&t=91042