So I am one of the more recent shut downs and interestingly have gotten response from paypal executive office that any offline purchase that was loaded with mycash card is against their policy. So my account will be restricted for good. Now here is the part that gets me and I am sure others have issues with it as well (judging on all the account shut downs over several months). When you have an ebay gift card and used it the gift card is worthless. So far I have not been able to get it refunded. Once you use part of your ebay gift card it's locked to YOUR paypal account. We all know you need a paypal account to use ebay gift card but you can't even transfer or sell the card then. Meaning you can not use ebay gift card with wife, partner or friend account.
Any input from others who found a solution for this would be appreciated. In my opinion it's illegal for paypal/ebay to keep the gift card balance.