at this point I haven’t read further…I know with a banking acct. they can pull those funds and freeze your paypal transactions ( meaning any incoming funds aswell that could be credited to any account of yours. )
I personally would at least try at canceling my credit cards that where attached to paypal. Now this may not fully keep you free of anything…because there are times where I have seen account numbers changed and debits still processed on another card linked ot the same customer. ( I worked for American Express at one time ) --again I just am adding this just incase this may not happen.
Last thing, is that if in fact the dispute ends in the others defense and your paypal accounts are frozen: Any other paypal accounts that are listed or connected to your home address will also be frozen. Keep that in mind if you try to set up another account later with different info but with the same address your would be out of luck. At least I beleive that is how it was linked a couple years ago.