No way with such a low fraud rate that PayPal just suddenly decided to cut you off. I'll bet good bitcoins that somebody (i.e. the admins at overclock.net) tipped them off.
Actually, PayPal does this with its merchants systematically.
The frozen funds all get pooled, and PayPal earns interest off the cash while the funds remain frozen. So they have a certain motivation to freeze accounts, then require their users to justify their existence with all sorts of paperwork they never mentioned upon sign-up. For instance, a utility bill that must be in your name. Not all of us have that.
Exactly. God. Then I'm sure when I have utilities in my name, I'll be asked to scan copy of my 4th grade report card...