I haven't really been using PayPal for anything more than personal and small transactions the last 2 years and NEVER keep more than a couple hundred dollars in there because they are extremely risky. My story:
I previously had an account with PayPal and had a couple issues with customers (I was running a hosting biz at the time - young gun) who had used fraudulent cards to send ME payments that resulted in my account being limited and DELETED a few weeks later. It was a nightmare of hours on the phone speaking to 3-4 tiers "up" the supervisor chain to absolutely NO avail. They refused to give me reasons why my account was limited (or deleted a while later) and I had over $1K (at the time that was big money to me) in my account prior to the incidence occurring which I still have not seen to this day.
I have an account now (no idea how I was able to re-register) but I don't trust them at all.