Maybe its the currency convert problem. It says in their TOC for cash accounts that money may be needed in the balance to convert it.: https://www.paypal.com/us/webapps/mpp/ua/cashagreement-full?locale.x=en_US
"To receive money in a currency your Cash Account is not currently configured to accept, it may be necessary to create a balance in your Cash Account in that currency or convert the money into another currency. Certain currencies can only be received by converting the money into another currency that PayPal allows you to hold. If the money is converted, PayPal’s transaction exchange rate (including our currency conversion spread) will be used."