As a retailer who has been stung by this bullshit with PayPal many times in the past, I can tell you with absolute certainty that the payment doesn't go through

As a retailer who has been stung by this bullshit with PayPal many times in the past, I can tell you with absolute certainty that the payment doesn't go through ever, at all. It isn't flagged and reviewed, it's just outright rejected with a cryptic error message indicating that someone, somewhere breached PayPal's terms of service. No money leaves the customer's account, no money arrives in the vendor's account; the process simply fails.