As a buyer, Paypal sucks ass too. Last year I bought a $600 smartphone on eBay via PayPal. I get the phone, it's blocked on the carrier - i.e. useless. Seller doesn't respond. I file buyer guarantee thing with eBay. They accept it, I return the item w/tracking. PayPal inexplicably refuses to credit me, claiming I didn't prove the phone was misrepresented (I was never asked to and eBay APPROVED the claim). I think the real reason is that the seller was a fly-by-night who emptied his account so PayPal can't get their money back...and PayPal sure as heck doesn't want to eat $600 on account of some stupid Buyer Protection policy.

Three months ago I get a fraudulent charge on my Capital One card billed via PayPal. I dispute it as unauthorized. Paypal tells my card issuer it's legit, furnishes paperwork from the merchant showing my card number but with an incorrect expiration, no AVS match, no CVV match, etc. It gets better! Capital One accepts this paperwork as proof and refuses to credit me for an outright fraudulent charge! I had to go to the CFPB to get this taken care of. Insane.

TL;DR: PayPal cares neither about its buyers or sellers, and in most cases will simply take whichever action is most profitable for them.