I doubt you could even store that amount of money on paypal.
I get aggressive emails when I have $200 there for more than a few days...
lol, there are loads of people storing millions on paypal. I have a connection to paypal that guarantees the safety of my funds.
No. You dont.
Assuming that you actually have the funds in your PayPal account (I am almost certain that you dont), if the bank PayPal uses to holds customer money were to declare bankruptcy then you would only be protected up to the amounts of FDIC insurance they provide (Im not certain they provide any pass-through FDIC insurance, but it would be a maximum of $250k).
If there was a levy placed on the money then PayPal would either have to pay it out of their corporate funds, or restrict your account up to the amount of the levy.