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So my issue is pretty simple, if someone disputes an transaction and if my balance goes into negative will it reflect the negative full transaction amount or net amount which i was going to receive?
Full and exact transaction amount. You will not be charged any additional fees.
PayPal simply discards the transaction and returns everything to previous state for buyer and seller.
Maybe except that additional small fixed fee ($0.30 USD, 0.35 EUR, 0.20 GBP, etc).
Can't tell you if will chrage or not, I don't remember.