I always thought if a seller moves his paypal funds out of Paypal they can take the funds from a credit card or bank that's on file, is this not true?
It's a board myth, PayPal have enough brains not to leave themselves open to unauthorized use chargebacks or criminal charges for theft.
One thing which is true, if PayPal refunds a buyer out of their own pocket and the amount is sufficiently high they will come after the seller to recover the funds (ie: collection or perhaps even small claims court).

"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
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