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I recently sold an item off of craigslist the buyer pay by PayPal is holding on to my money. The buyer put in the tracking number, what is happening! Update: the seller was scamming me! If the email doesn’t come from PayPal it self it is fake,the email that PayPal sent to confirm your account is from the REAL PAYPAL luckily my package did not ship and I put it on hold. Others are not as lucky , be careful! And don’t put any personal information in the spam email’s either
It appears from your update that in this case, it was not an issue of delayed funds availability, but was in fact a spoof email from a fraudster who was trying to trick you into sending an item without a payment. The information that @kernowlass provided is very helpful for understanding the way that actual funds availability works in the event that you do ever encounter it. If PayPal holds a received payment for that reason, the transaction will still show in your account activity and it will tell you that it's ok to ship. If there is no transaction or the instructions tell you not to ship yet, then it would be important to hold off on shipping the item.
I'm so glad you were able to retrieve the shipment!