Same thing happened to a new startup company I ran over 12 years ago. PayPal froze two+ months of revenue. No reason given. Can’t remember if we got it back.. but it was very hard at the time.

PayPal won’t change. I’ve never used them again for custodial and avoided all transactions where possible.

To this day I don’t understand how they get away without being a bank, with all other associated regulations. They have less heat than Bitcoin. Certainly corruption at play here… no other way.