Paypal vs Regretsy

I don't see what the issue or cause for concern is here. The person collecting the money is:

(1) Not a 501.3© organization
(2) Trying to collect for a charitable cause

It reeks of possible fraud. Paypal has the right to freeze a fraudulent account. Trying to fight against Paypal by saying, "Think of the children! The families you are hurting!" is a red herring and doesn't refute Paypal's argument. Regretsy should have contacted Paypal before trying to use them as any sort of charitable collection agency.

That in itself is true, but not their reaction or comments when the person tried to contact them about it. They were all kinds of condescending and mean to boot.