When funds show as On Hold, it means PayPal have them off to one side. Your customer will have opened a dispute with either eBay or PayPal, and the funds will be to one side until a solution is reached. You should have received an email regarding this if this is the case. When they put funds to one side like this, PayPal can't dip into your bank account, only the PayPal balance. You'll be in the negatives if the amount they put on hold was greater than the balance at the time. This doesn't mean they necessarily will receive a refund. It'll be up to whoever is handling this claim. With PayPal, you can open a dispute like this up to 180 days after the date of a transaction.
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