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You don't know what you're talking about. You can issue refunds with no money in the account.

Maybe you know better! But what paypal does is just issue refund and it doesnt have money(am I wrong on this?). If you have zero balance, your paypal account will reflect negative balance, and whoever was supposed to be refunded will not receive the money until paypal successfully transferred it. In this case, they never will. Well, if i am wrong, please point out. thank you.

No, you are 100% right^^^Paypal can't dip into your bank account either to resolve the negative balance unless you are going to make a purchase or give them permission to do so.