Not sure if this is bad or good news...
how could it possibly be bad news?
If they buy up a lot of volume @ mtgox, price drops. (Refer to two weeks back for a similar scenario). The budget that PayPal works with is in the ballpark of what can be used to manipulate the market at this point of time. Also, I doubt they give two shits about the whole BTC world. It's better for them to cause the price drop because they can buy everyone out.