The goons over at SomethingAwful forums, known for being a brash, childish, silly, sometimes harsh, lively community, decided to give to the people of New Orleans and started a fund drive. Their servers are hosted by the guys behind the interdictor livejournal from New Orleans where web cams, photos and horror stories from inside the city have been keeping lots of people up to date of what is really going on down there since this horrible situation started.
So, having their credit card servers offline in New Orleans, the Something Awful goons had to rely on an outside company to bucket the cash from their fund drive, and they picked Paypal.
Turns out the silly goons have generous bleeding hearts and gave $3,500 AN HOUR to the fund drive, just beautiful to see and making them the 'Uncontested Greatest Community on the Internet', but then what did Paypal do? What would paypal do?
Why, close the account as soon as it clocked past $20,000, of course. The account is closed without warning, the funds are frozen and paypal is showing their true colors once again. Read the whole sad affair at Something Awful.
Be careful when you use paypal. At the very least remove your money from it. They can and will screw you over, it's not a matter of "if", it's just a matter of time.