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i have the same situation, they closed my paypal account after 2 items was sold on ebay and the second sell was by scammer on ebay, so without investigation they just closed my account
If you have been told your Paypal account has been permanently limited then Paypal tends to hold any funds for 180 days. This is the same time frame that buyers have to open Paypal disputes.
If no disputes are opened in 180 days then normally you are allowed to withdraw the funds. That is as long as you are over 18, the account is in your legal name and registered in the country where you reside.
Sometimes they confiscate funds under this policy.
Paypal also may request further documentation from you before you can withdraw those funds.