You know, that is exactly the point here, isn't it? Why wasn't PayPal already aware of it? Clearly, the answer is simple: why should they be? Until somebody important gets in touch with somebody important, nothing has happened.
Paypal was aware of it, as they claim its written into their policy.
They should stop worrying about the 'important people' and just simply 'do the right thing'. Start with retraining the customer service people to not be belligerent jerks. Next if you're going to stand behind some regulation to monitor accounts, staff it appropriately so innocent people don't get randomly locked out of access to their own money for 6 months.
No, no, I mean this guy claims that PayPal was not aware that Regretsy was having troubles with PayPal. Think about that. Think about the utter failure of management and customer service that that concept implies.
