Why don't you bring it over to PayPal support? They might be able to tell you the complete reason why this has happened to you. They say they will not let you use their services anymore, but that doesn't mean they can hold back your money, unless it's obtained from a fraudulent source.
I already know why this happened to me, it was because paypal sent an email notification saying that they would start limiting people who were using payivy. I don't check my email too often, so I didn't see it and I got screwed over