This is the first time that I've heard anyone suggest Virwox is an exchange that is feared, to be completely honest.
The only times I've seen it mentioned is to newbies who have PayPal in the currency exchange section.
Not feared in the literal word, but largely avoided. Most trades involving paypal, be it here, or on localbitcoins, rise up to at least 10% of fees, for the sellers to protect themselves from chargebacks, which is obviously fair. So I don't understand why people agree on such harsh terms, and don't think of virwox.
You can look up virwox in the forum, and half of the posts that come up will be ones suggesting it as a "last resort" because of its "high fees".