Are you a lawyer? You appear to believe that a signed contract is inviolate. I am not a lawyer either, but I've dealt with contracts enough to know that the clause in this contract has "reasonable" in it for a reason, and that "reasonable" does not mean "whatever we think is reasonable".
No, I'm not, and I didn't represent myself as one. I'm not sure what you find objectionable about my comment. I was wondering if the person I was replying to actually knew more than me or if he was speaking with undue certainty, so I asked.
The contract does not say, for example, "when we, at our sole discretion, toss a coin and arbitrarily decide one way or the other".
I think that tossing a coin and using reason are different, and I believe that a court would uphold my expectation that reason was used. Paypal will then have an opportunity to present their reasons. In this case, IMHO, it would appear that a "reasonable standard" of "reason" was not used.