unfortunate that it happened.
don't know why anyone ever sends someone money through zelle, applepay, venmo, etc. 0 protection and well known that scammers use it for that exact reason. Paypal/credit card/in person (so you can find them if they suck) or no deal.
And paypal doesnt generally withhold or block anything unless there is identity theft, issues with ebay sales/transactions, or some other fraud which should have been a red flag when he told you that. You can move thousands of dollars through paypal no issue without a problem arising, and even if they do say something, they just have you verify it and your account is fine.
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