The account of a reputable user on a collectors forum has been hacked and used to scam at least 6 people causing a loss of multiple thousand dollars. Because the user was known and had a great history and relationship with others, a lot of people fall for it when he started to sell a few more items of his collection this weekend.
Paypal denies to investigate because friends and family was used in all cases, because the considered the member a friend.
While I somewhat get that Paypal is not legally required to make people whole, I feel not even looking the case at all is neglectance.
The whole purpose of "friends and family" is that there's less fees but no protection. If you're buying a good or service from somebody, even somebody you know, you probably shouldn't pick "friends and family".