This is correct. Customer double spend risk is not what’s ring discussed here. The risk is PayPal losing money on the spread. A user buys a pair of shoes with b

This is correct. Customer double spend risk is not what’s ring discussed here. The risk is PayPal losing money on the spread. A user buys a pair of shoes with bitcoin, PayPal pays the shop owner fiat and takes ownership of the bitcoin. Now PayPal is on the hook for selling that bitcoin if they want to keep their cash flow in fiat. The price of bitcoin can move wildly in the time it takes for a Bitcoin transaction to settle. In reality PayPal is a huge company and can sell to many brokers who will take on the risk for PayPal.