My case is different.
I opened a new hotmail account and tried to register in PP.
It said already registered... I was like WTF, hotmail id was just created!
Then I went to password retrival process and gained access to PP.
For my surprise, its balance was $-500. I contacted customer care and told them about the issue and reply comes.... "The id has been in our system for 2.5 years. Since you have -ve balance, please fund your account."
I thought its not worth to have any more conversation, so I left that ID.
6-7 PP id were created from the same IP. Could it be PP was trying to penalize for that?