Re: So what happened here?
Two possible scenarios here:
1. Account has been hacked - but that's kinda impossible not retrieve the account right away, considering how established the account is.
2. Exit scam - looks like he's running all the funds, that's why he just told your friend to dispute the case, it will leave his paypal (the seller) into negative balance, but he will not care about that.
But don't worry, your friend can still get the funds, just let him/her open a case, and he/she will be refunded. Escalate the case right away, so he/she can get the funds sooner.
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