Except that the incompetent woman really did deserve to be sacked. This guy did not deserve to have his money kept from him. He is also probably correct that some brainless automatic filter went off over gay phone sex.

Paypal cheats. Hard. End of story. The more money they can lock up for longer, the more they make. It's a great big moral hazard built right into their business model that creates a disincentive to operate fairly so huge that even Mother Theresa would have a tough go of it.

Squeak whatever wheel needs squeaking to get attention. Even if it's a gay wheel.

No. Paypal being unethical doesn't give the OP the right to be unethical.

There are people who are actually being discriminated against because they're gay.

Using it as a level because your site triggered a stupid 'phone sex' filter via user-generated-content is wrong.

Paypal probably has to cope with millions of $ worth of fraud a day. The fact one or two false positives crop up from time to time isn't surprising.

The terms of service clearly state that sites of a sexual nature are not accepted.

While false positives are a fact of life with any filtering system, they have no incentive to FIX the problem, as those false positives lead to their being able to hold funds indefinitely, earning interest at least, and potentially absorbing the entire balance.

This is called a moral hazard, and it should be pretty clear to you.

Paypal has a very long, very well documented history of triggering holds on accounts, and never resolving them.