Which is why, if you do any sizeable transactions with Paypal, you set up a separate checking/savings account and route your withdrawals through that.

With most US banks it's super-easy to have multiple subaccounts and transfer money between them via online banking.

Sure, they'll send nasty letters asking you to rectify the negative balance in your account, but if you are in the right it's a lot lot lot easier to work from this position than when they've taken or frozen your money.