How does PayPal penalize a negative balance?

Question

PayPal

Hello!
I provide web application development services. Worked with one client for a very long time. All payment was via PayPal.
And now one part of the project was divided into 3 parts
1 - prepayment
2 - after development
3 - after testing.
I finished development, the client started testing and my wife joined him. She said that everything is bad and they will look for another one, but so that I finish testing. I started to pressure and blackmail with a bad review and a dispute on Paypal. the first time we agreed peacefully, I decided to finish everything the first time she closed it. But then, without warning, she opened the second one and I no longer began to work, Paypal closed it in my favor. But the third time was through Visa chargeback. And in general, I now have a negative balance.
Although I did everything, there is all the code, there is a correspondence where the client confirms that he has no claims after the first closed dispute.
Client from USA but Russian speaking.
Paypal can do nothing for any protection as it turns out. Debt $400.
What happens if I don't turn it off and just stop using my account?
Thanks

Answer 1

Not in this case, most likely. Because there is simply no evidence that you did it on purpose, in order to receive money without providing anything in return.
"Technically" the client who canceled the payment via chargeback is a scammer. But the only way to prove this is by squabbling with his bank. For chargeback (if that's the case!) - "I didn't buy it and I don't even know what it is."
Most likely he made a refund, but they didn’t want to understand and delve into the PP, and simply outweighed it to you.
Therefore, the most correct option is to close this account and open a new one.

Answer 2

To hell in general.