I made a mistake out of inexperience, was refused the chance to correct that mistake, and all of my PayPal accounts -- including my PERSONAL account that I had had for years -- were banned because they were started by a person (me) who had an account frozen or banned. Is that a legitimate enough story?
PayPal had banned me because I was under 18 when I opened my account, they then allowed me to open a new one (right after this one got suspended) and it has been working fine without any issue since then (10 years+).
Stop doing shady stuff.
If PayPal requires an SSN or EIN, why do they even allow you to create an account without one?
The guy can't keep his story straight for 3 lines on HackerNews, he is obviously doing stuff that he shouldn't and using his PayPal in a sketchy manner.
I have seen way to many stories about people claiming to have been banned for no reasons from services (online video games are a popular one) before it is revealed the ban was 100% legitimate, to take any new story like this at face value.