I don't know how well regulated Paypal is, as you infer, since it is not a bank and does not have to follow bank rules.

Banks and credit card companies seem to get it right with many more regulations, why can't Paypal? If I use my credit card for a spending spree, all it takes is one phone call with Visa to have everything cleared up. Paypal wouldn't have earned their reputation if they were able to provide that level of service.