Johnny Long is to blame for deciding to use PayPal in the first place.
It's been known for years now that PayPal is corrupt as f***. There's been countless websites set up giving details about PayPal has f***ed over businesses and individuals. Here's just one example:
Welcome to PayPalSucks.com, PayPal Lawsuit, PayPal Alternative, PayPal Complaints, Fraud & Evil behind the PayPal system!
I clicked on your link and it turns out he kept $10,000 in a PayPal account, sweet Jesus Christ! I had to use PayPal for doing business on eBay but I always made sure to dump the funds into my bank account as soon as I reached $100. (And I withdrew the money from my bank account very quickly in case PayPal decided to reverse the transfer).