Quoted from PinBallPeteFromSD:

So bring out the pitchforks. I am the guy that paid him on friends and family for a pin. Because we are friends. He needed the cash asap and that was the easiest way to get it into his hands. We live about 120 miles apart. I bought a game on Nov 11th from him. About Jan 10th I noticed a charge on my credit card for 1200.00 to GAME ROOM GU. I assumed it was GAME ROOM GUYS since I order a ton of stuff from them and at the time I was redoing a pin and building a virtual pin. So I contacted GAME ROOM GUYS and sent all the info over to them. They are awesome. They agreed that the purchase was not from them, and they helped initiate a fraud case. 4 weeks later I get a text, and fb message from CRAN wondering with the hell was up. And rightfully so. We know each other, but we don't know each other well enough. He explained that my payment was reported a fraud. My heart sank, because I immediately knew I reported it. Come to find out I payed his email on FF on PP, but the charge on my card was to GAME ROOM GU. I assumed the GU was just shorted for GUYS, come to find out CRAN's business Name is GAME ROOM GURU. I immediately called my CC and had the charge returned. I also offered to drive the cash to him.
Simple Mistake. As a buyer, I would say Paypal did right by me, it was a odd unintentional mistake. And on his end they did not freeze his account or remove money, they informed him. He looked into it and I made it right. No denying this was a royal pain in the ass for him. But I feel safer knowing that my CC and PP had my back incase of a fraud.