Also: Everyone talks about them "freezing" his account or stealing his money, when they did no such thing. They're simply requiring him to keep a float in his Paypal account to cover chargebacks, and due to the amount of transactions he gets, that float has to be an unusually large amount.
At a point in time when it was unclear to Paypal whether or not all of the money was fraudulently obtained and was going to be charged back, that action seems perfectly reasonable.