PayPal is a great site, I've used it since it came into existence over 10 years ago. Never had a problem.
You have to realize 2 things about PayPal:
1.) NEVER set up auto-anything on PayPal. If there isn't enough money in your PayPal account for the transaction, then the transaction gets declined. I still have my bank account on file with PayPal, but I pull the trigger. It is NOT set up for back-up funding. Nothing is.
2.) The PayPal CREDIT card is a piece of rip-off trash. However, the PayPal DEBIT card is an excellent product that I use all the time, enjoy receiving cash back on and have even used to rent cars. As a business Mastercard it offers free purchase protection, roadside assistance, rental car insurance, etc.
To recap: do not set up Backup funding on your PayPal debit card and do not activate the Balance Manager.
PayPal is a great site, but you have to know how to use it and not use it.