I still didnt get why people are buying crypto on paypal if you cant withdraw it from there
Simple. Because the value of BTC there is same with the real BTC so if you want to invest in BTC, they can simply buy and flip there without moving it outside paypal. PayPal user do not used to store there funds in there so it's same on BTC. Most of people that buying BTC in PayPal are just want to get profit on Bitcoin volatility since they are not a bitcoin enthusiasts.
doesn't Bitcoin price have a real price on all exchanges ?, I'm still confused by your statement about the real price of bitcoin,
in my opinion, who buys bitcoin on paypal is not a merchant, but a user only,
if a trader trades on paypal of course does not have maximum profit, and everyone chooses an exchange like Binance.