I contacted PayPal Support on Twitter via direct message. Here is the response "Thank you for getting back to us. I would like to inform you that PayPal's security system sometimes blocks activities and it may help if you try withdrawing the funds after 48 hours. This will give the system a chance to re-set and the process may go through successfully after that and please do not try to attempt to withdraw in between the given time frame, as our security system will get triggered and the clock will start from zero, from the time of next attempt. Your understanding in this matter will be highly appreciated. If you need any further assistance, please feel free to get back to us. Thanks! ^SUH" So basically better to wait for a minimum of 48hours before trying to withdraw again. I will give feedback here if it works.
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