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Seems as though I hear more negative horror stories about Paypal these days than good ones. Sucks that they nailed you for $2k.
If you're located in the U.S. - try sending them a hardcopy snailmail with all the details of what happened and carbon copy it to the Federal Trade Commission:
Federal Trade Commission
600 Pennsylvania Avenue, N.W., Washington, D.C. 20580
Make sure you show that you've carboned it to FTC on the copy you send to Paypal so they're aware of it. If they realize you've taken the time to alert the FTC...it may prompt them to look further in to your account and hopefully make more effort to resolve the issue.
Good luck.
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