There was a post on Reddit that came from a PP employee showing that they are told to ban/deactivate accounts that are allowing BTC -> fiat -> BTC trades without a proper transmitter license. I don't know where it is off the top of my head but someone else might.
Sorry to open a 2 week old thread but I actually got a phone call from PayPal about me selling .25 bitcoins and receiving money for it through them. They said that their policy is against any currency exchange and they see bitcoins as a real currency. I had to print off a statement and have it notarized and fax it back to them stating that I will never do it again. And if I did they will deactivate my account.
This service did not sell bitcoins?
