Paypal "limiting accounts of PS3 sellers"?

From Digg, a strange tale of Paypal and the PS3 :

I just got a call from PayPal, they said they are putting a account lock on everyone who sold a PS3 or Wii.

This is bizarre even by the standards of stories that people tell about Paypal. Given that the poster seems unsure whether they've had a phone call or an email, I'm inclined to put this one down to poor communication on one side or both.

Nevertheless, if people who've previously earned and spent a few dollars here and there suddenly have thousands going through their accounts after selling PS3s for crazy money, who can really blame Paypal for thinking something dodgy might be going on? These are regulations designed to protect users as well as Paypal, and if my account suddenly had a hundred-fold increase in turnover, I think I'd want it security-flagged.