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I'm so sorry to hear about your recent experience with not being able to use your PayPal account balance to send payments.
As this is a User to User Community, we don't have direct access to your account. I recommend contacting our customer service teams for further assistance if you're still seeing this issue on your end. You can click 'Contact Us' at the bottom of any of our pages to get a phone number to reach us at, or you can contact us on Twitter (https://twitter.com/askpaypal) or Facebook (https://www.facebook.com/PayPal). We would be happy to take a look at what options might be available to you.