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If a buyer wins a dispute, but there is no money in the paypal account,how does he get it?

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A buyer paid for a "service" and then disputed it. He won, but there is no money in my paypal account as I spent it, but my account is showing negative. I read the paypal email which said that "the buyer has been refunded, but there were not enough funds in your account to cover the refund, so your account is in the negative". Does that mean paypal paid the buyer out of their own pockets?

It was a stealth account

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