Well, paypal has updated their emails to have the following detailed wording:
"to purchase pre-paid cards and exited through large even dollar debit card purchases at Wal-Mart we may have to limit or close your PayPal account"
The strange thing is that I haven't loaded anything to this card at all this month and have not used it at wal-mart in two months. They must be reviewing old old transactions.....and on top of that none of my transactions are exactly even.....ie they're 1001.40 or some random bp amount.