The reason why it happened was Paypal "felt" the transaction might have been fraudulent; the buyer was fine with what they had bought and hadn’t reported it as a fraudulent transaction, so no problems along those lines. The only thing that the buyer did say to me was his Paypal account was a mess so possibly there was something wrong, not really sure TBH. I did give him several chances to sort out other payment (which he initially said he would do) but that was the last I heard from him, even tried to contact him be asking if anyone of here knew him but no one did
For some proper horror stories with Paypal have a look at
http://www.paypalsucks.com/ Some people have lost thousands and thousands of pounds due to Paypal's rather odd policies and apparent indifference