I'll give the basic run down of what happened.
Long story short: The account got put to negative $-280 and sent to collections. I don't know if it can even receive payments at the moment all because of how PayPal deals with Credit Card chargebacks.
Basically, this guy charged back 250 or 260 something worth of virtual goods that were sent to him, but he did the chargeback 3-4 months later with the excuse "merchandise not received."
After talking to numerous reps, the only response I would get is, "well while we don't handle virtual disputes, we're going to fight on your behalf. However, it'll be up to the credit card company for the final decision."
So I took a screen shot of all the evidence I had and uploaded it to PayPal. I called once again after nothing had changed for a month and I spoke to a specialist. He looked into my case and basically stated that I had sufficient evidence against the scammer and that it would probably go in my favor BUT to hold tight for 1-2 months to see what the credit card company says while they send over all the information.
One month later, I get an e-mail saying they're taking 40 or 60 something for processing and that the credit card company decided in their favor despite all the evidence I had against them. The guy basically taunts me after he got his money back and says "lol sucks to be you."
I never received notification that he paid with a credit card, nor did I know that cheap scum can do this with a credit card. Basically, if someone charges back with their credit card company, they're going to win and that's just free money that you have to give PayPal.
So now my account is sitting here, -280 and I'm getting calls from collections every day and I'm not 100% sure I can even receive payments in there anymore.