I wont be much help but I can confirm that PayPal does this often and it IS reported upon frequently. I, personally, have had thousands of dollars held (just above 20k USD) for 8 months (6 month hold and 2 months of furious phone calls to get a check cut).

I will never use them again as I believe they stifle innovation and are a harm to small businesses that are "making it".

PayPal is very much one basket for all your eggs...don't get duped! Get other baskets!