So is this how the so called managed payments scam actually works?

Buyer used paypal to purchase items but Ebay refuses to send the money to paypal but instead holds it in their own accounts for 24-48 hrs or longer earning interest from millions of dollars it receives every day and then you wait another 2-3 days or more for it to even turn up in your bank account.

Talk about a complete scam.

Sure hope Ebay doesn't think I will be sending items out til the money is in my account because I won't be.

I would not trust Ebay as far as I can spit.