Similar to my experience, especially the ping-ponging between eBay and PayPal. In my case, I _did_ actually sell something, but then the buyer decided to return it. Somehow both my eBay and PayPal accounts got into a 'locked' state, with no way to resolve it instead of contacting customer service. The experience with their CS department was beyond frustrating - they're happy to send 'red' letters demanding refunds and transaction fees despite cutting off all my ability to do anything about it.
Reading this post has given me the final nudge I need to look into closing both those accounts.