If the money is still there but just on hold, this is normal procedure while a case is being reviewed.  The hold (or refund) happens in paypal but ebay instructs them to do it, so it's not paypal who's fiddling with your money if a case hasn't been opened through paypal.  

Have a look at the case on ebay and see what it says in there, if that's where the original case was opened (I read all of the thread, I just can't remember the details, but I'm pretty sure it was an ebay dispute, not pp).