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@casbit33 wrote:

Are you sure it's not the whole account. This is what it says.

eBay Money Back Guarantee

If a buyer opens a case through eBay Money Back Guarantee (because they’ve not received an item or got something that wasn’t what they ordered) we’ll ask PayPal to hold your funds while the case is open. The funds will be released if a case is found not to be the seller's fault.

If eBay is asked to step in and help and we decide in the buyer's favour, we will give them their money back. To do this, we may reverse funds held in your PayPal account back to the buyer, or pay for the refund and then seek reimbursement from you (either by debiting your PayPal account or adding a charge to your monthly selling invoice).

Your PayPal account can be on hold for up to 7 days.

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 From the Spring Seller Release 2014 -

3. PayPal funds may be held temporarily in certain situations

For some sellers or transactions, we may place a temporary hold on PayPal funds to help ensure buyers receive their items as expected
If your payment is held:

• The funds will show as 'pending' so you'll know the buyer has paid. (The hold isn't visible to buyers.)
• We'll let you know why your payment has been held and what you can do to get access to your funds.

Learn more about payment holds.

I assumed it was just for the item/s in dispute.  Am I reading it incorrectly?

It seems a bit OTT and unnecessary for the whole account to be frozen.