You're going to get variations on that quite a bit when looking for a merchant account, since what you are doing actually is very risky. This is not a Paypal issue so much as it is, shall we say, a divergence in perceptions of reality vis-a-vis how much payment processors care that your business requirements are their business requirements. Supporting pays-only-if-event-happens is your business requirement. It is very, very quirky for payment processors. They can do quirky things. They're expensive, require reams of paperwork, and you have to be able to convince them that you're good for it. Operating history of a week will not do this.
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You're going to get variations on that quite a bit when looking for a merchant account, since what you are doing actually is very risky. This is not a Paypal issue so much as it is, shall we say, a divergence in perceptions of reality vis-a-vis how much payment processors care that your business requirements are their business requirements. Supporting pays-only-if-event-happens is your business requirement. It is very, very quirky for payment processors. They can do quirky things. They're expensive, require reams of paperwork, and you have to be able to convince them that you're good for it. Operating history of a week will not do this.
Yeah, they should really make this known before invalidating an account based on it.
OP also should have secured a backup payment processor for such a risky venture.
Why lament over the thing that will never happen instead of focusing on the solution you can use easily by yourself?