Nonsense. Obviously Paypal is holding the funds so he can't take them and scam his followers.

"Obviously", my ass.

You must be a child who has never had a bank account. Banks routinely hold funds that you deposit for a period of time as a fraud prevention measure.

Banks hold the funds for various lengths of time, up to 9 days for a new account. Paypal, on the other hand, holds the funds indefnitely and sometimes just declares them a violation of their AUP and takes them.

It does, because we can look at Paypal's long history of honoring the money in accounts instead of stealing it,

Uh, no. Paypal reserves the right to just take as liquidated damages $2500 per transaction which violates their acceptable use policy, in their opinion. And they do exercise that right. Which means, since each transaction is less than $2500, they might well just take it all.