Quoted from starfighter:Correct.
In addition, if the seller removes the funds from the account before any claim, paypal has nothing to withdraw for the dispute. Assuming of course the seller doesn't have a bank account attached to the paypal account.
You are wrong about that. They will charge it to your paypal account, sending into the negative. If you do not bring your balance to zero, they will eventually send you to collections. Happened to me before.