If you're new to PayPal, you can also CALL THEM on the phone and talk to them. I've had to call PayPal once and they were very helpful (for another reason) and resolved the issue straight away on the phone. Before that, I had been waiting for about a week to get an answer. So since you're new, I think it's best to call them to clear things up and for them to answer any questions you may have.
If I were you, I would wait for the money to come back into your account firstly. From the email, I think what they are doing is blackmailing you to be honest. I wonder whether you mention this to PayPal and see what they say? If they are doing it for you, then no doubt they are doing it for others too. This is then giving eBay a bad name as well.
Hopefully others can add to this as well and give you some opinions as well.
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