I'm sure everybody knows by now, but this is certainly not the first time paypal has done this kind of thing:
http://www.somethingawful.com/d/news/paypal-fiasco-summary.p... (slightly nsfw)
http://www.somethingawful.com/d/news/paypal-fiasco-summary.p... (slightly nsfw)
I don't see anything about this story that makes PayPal look bad. Not objectively at least. Subjectively, we'd like the fundraiser to have worked out, but it's the processor on the hook if the fundraiser is a scam...
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