On February 2, 2022 news broke that PayPal went on an account-closing-spree after realizing they had been scammed by "bad actors".  Here's what happened:

Over the past 15 years you have likely seen financial incentives for opening a bank account.  Some banks, such as Chase offer pretty big monetary bonuses for new account owners.  I have personally seen promotions Chase runs that give as much as $250, which definitely encourages people to open their account with Chase.  So, in 2021 when  PayPal offered an incentive program that would give new members a small financial perk for creating a PayPal account, it seemed like nothing out-of-the-norm.  The way it worked is, each new PayPal member would receive $10 that could then be spent using PayPal.  Harmless, right?  

PayPal quickly discovered that their promotion was a massive success that triggered massive amounts of new accounts.  In fact, there were so many new accounts that PayPal told the public that they are expecting 750 MILLION active PayPal members by 2025, and the stock market was stoked!

But, no good deed can go unpunished, so in early February, PayPal made the shocking discovery that the new PayPal accounts were not legitimate,and were actually created by "Bot Farms".  Essentially, these accounts were totally bogus and were only being created to steal $10 per account, with no desire to ever actually use the account.  

PayPal was forced to inform the public that they had made some serious errors, and so far they have discovered over 4.5 MILLION of the new accounts are fake.  This means there is no possible way they can have 750 MILLION active members by 2025.  This shocking news made stock in PayPal plummet quickly.  Before 10am, stock in PayPal had falling by 25%.   By market close on 2-2-22 the stock had dropped from $175 per share all the way down to $124 per share.  Since the 2nd the stock has moved slowly.  As of 2-6-22 it is only at $126/share. 

If you are currently experiencing an issue with your PayPal account, it is possible you may have somehow gotten swept up in this giant account closure.  If you need to contact PayPal you can do so here (click the link then scroll down the page and you will see options to send a message or call)