Yer, I got one of those "Paypal is a douchbag" stories this weekend.  I had to file a dispute last month about an item sent to me that was a POS advertised as NOS.  The seller (in Brazil) was kicked off Ebay right after I received it.  I filed the dispute on August 2, I sent the item back per Paypal instruction ($23 my shout) on August 8 and send the tracking info to Payal per instructions.  This Friday night (19 Sept)  at 10pm (I'm in the Eastern time Zone US) I get an email from Paypal saying if I don't send them a fax showing the proof of shipment by Monday (22 Sept) they will immediately drop the dispute. 

That was the first damn correspondence from them in over a month and they drop a "do it now or else" crap on me.  Good thing I was available to send them the needed info.  This is the tactic Paypal uses when they have to honor a claim, they try to force you into a situation where you may not have the time to respond and they drop the claim and your screwed out of your money.