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Let's talk numbers - how much was put in, how much was withdrawn, and how much of a negative balance do you owe?
Paypal makes money on the conversion just like everyone else. So it would make sense, let's say 10 pounds equals 20 dollars.
They put 10 pounds in, and it converts as 19 dollars (they keep the commission).
They reverse the transfers, and paypal gives them back 10 pounds (the full amount) only now they're yanking another dollar... this would leave you with a -2 balance and the guy with his original 10 pounds.
Highly simplistic, but is that basically what happened?
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