That happened to me in 2006 (unrelated to domaining) and marked the last time I used Paypal until very recently when I realized it was costing me a fair bit more in lost sales than the chargebacks would have.
As sorry as I feel for a person who's account is actually hacked, I really don't see how I should be the one out $300+ -- what did I do wrong to deserve that? Why isn't this covered under seller protection?
Frankly, I'd love to see someone sue these POS and I really wish everyone would just use Moneybookers.
