Maybe they disabled PayPal withdrawal for everyone as they didn't mention that only you have been disabled.
Chances are that they would make some sort of announcement if they disabled PayPal for everyone and not just for him (which doesn't make much sense imho, to block paypal for one person).
I contacted support via chat, but bots responded telling me that my problem was taken care of and that they would contact me via email. I am very worried because I am afraid that my funds will be blocked in the account without being able to withdraw them in any way.[/quopte]
All that you can do now really is to wait for their reply. It is possible that Coinbase will ask you for sme additional verification in order to regain full control over your account but once again its proven that keeping your money on CEX is risky, even if its one of the most reputable exchanges like Coinbase.