Must Add Funds To PayPal to Issue Refund

[PDC3]

Normally when issuing a refund, and there are not sufficient funds in my PayPal account, funds are automatically transferred from my bank account to cover the refund. Now it is asking me to transfer funds into my PayPal account to cover the refund. Anyone else experiencing this or have an idea why this is happening? Thanks.

[loganRunner]

I am also having this issue. I need to refund a customer and I am getting this error. 

I swore I refunded this customer last week but now I see no confirmation and it is asking for funds.