Paypal typicall takes no stance for the buyer or the seller when dealing in virtual goods. So money is transferred, nothing happens. Problem is that buyer will use a compromised account to buy it and sellers will take advantage of the fact that paypal won't reverse the money because the item was virtual.
They don't even have to use a compromised account. All they have to do is tell them they didn't authorise the transaction and they usually get their money back. Paypal really need to get their act together.
ebay allow people sell cryptocoins only if you send them in usb pendrive lol
Or Paper wallets. They're cheaper and easier.