Why would you report him? He's telling you the truth. Just because it's verified doesn't confirm your legitimacy. If this forum is miserable then why are you here? It's like me complaining about a place where I'm not forced to stay. PayPal sucks. Accept it. They can shut you down when they like and won't be able to do anything about it. You can send as many documents as you like, raise your limits as much as you like and follow their ToS to the T and still get banned.
The most reputable financial institution online.
It looks like your the one who's making a joke here. It's not the most reputable at all. A quick search on PayPal scam brings up thousands of reports of people getting their accounts and funds frozen for no reason. Too many for it to be false positives.
Maybe you should spend less time arguing your case and spend more time on adjusting to the etiquette here so you don't have a hard time trading.