Yes, this happened to me too starting in the beginning of February. I used to run most expenses, including my largest monthly expense, through PayPal to pay via Fold card. But then they said their "banking partner no longer allows" these types of transactions. Coupled with their new fee for instant funding, it reduced my use of the Fold card pretty significantly. I've had a Fold card since Dec 2020.

Stopped working for me too, about 7 days ago, right around the time Signature Bank failed. I doubt it was a coincidence. I spent many hours trying to get it working again. No success. Bummer.