This same thing happened to me a few months ago and is happening again now. It seems like it is just the PayPal bill pay that doesn't work right.

When I went through this last time, it was the same runaround; in the end what I figured out is that PayPal has some issue when they try to build Fold, then they try again and if it fails a second time they shunt to your second form of payment.

People at both ends of this have no idea what is causing it and the official solution is to just wait. Last time it only took a day or two before it started working again, but the only way I could tell that it worked was by doing small test transactions until they started to go through correctly.