AFAIK to avoid chargeback and dispute in PayPal the seller/buyer (with payPal account) should only send funds with friends and family also from PayPal's balance.
Coz s/he can still open a dispute on his/er bank/card issuer for a chargeback if s/he send funds from a bank or credit card (but you still need to trust him/er with the sending because s/he can still fake it, say, that s/he used his paypal balance while it is not)
So as long the buyer/seller okay with the terms of sending paypal funds with regards on above mention, then I guess it's okay.
Yeap. The dude from HodlHodl at the very least
claims that the transactions would be through F&F, which gives me a bit of confidence, but yea I just wanted to make sure and hopefully hear about other people's experiences. Juuuust to be extra sure.