I think PayPal uses a very heavy handed approach in dealing with sellers and merchants.  I have used PaPal as an ebay seller and to send funds from one PayPal user account to another.  If you are a new seller on ebay, PayPal will hold your funds in escrow for a minimum of 21 days. Whether you ship the item in a timely manner or not; whether you ship products that are exactly as advertised, PayPal will hold new seller funds in escrow for 21 days.

I recently sent money from my Canadian PayPal account to my US PayPal account.  This transaction is taking approx. 14 days to complete (the funds cleared from my bank in 2 business days).  Both my accounts are in good standing and I have had both PayPal accounts for several years.  Why is PayPal doing this?  Because they can.

What deeply concerns me is PayPal reserves the right to do this: "Payments received in your Account may be reversed at a later time, for example, if such a payment is subject to a Chargeback, Reversal, Claim or is otherwise invalidated."

Even more disturbing, "We may close, suspend, or limit your access to your Account or the PayPal Services, and/or limit access to your Balance for up to 180 Days (or longer if pursuant to a court order or other legal process)"

The two clauses are in PayPal's current PayPal User Agreement: https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=ua/UserAgreement_full&locale.x=en_US

I would be quite reserved in believing that Terrahash will find a favorable response from PayPal in reagards to having their funds released.  There is no benefit for PayPal to move quickly on this matter.  Interest is accruing in PayPal's favor each and every day.

It makes me firmly believe that a technology like bitcoin is long overdue to free us from the abuse of companies like PayPal.