Paypal limits accounts often and these restrictions can often come without warning and tie up large amounts of funds.
There is a strategy you can utilize in advance to ensure that you can cash out all your funds quickly in these situations without having to wait 6 months for them to be released. It simply requires having more than one Paypal account that you constantly utilize.
First off, you should deposit any funds received to a bank as quickly as possible.
Make sure that within the last 6 months, you have some transactions where you send money from one Paypal to another, it is recommended to do this with bank as a funding source.
Now, if your main Paypal gets limited and has a balance that you can't withdraw or send, you can simply refund any of the payments you made in the last 6 months from the other account and it will go directly back to your bank. For instance, lets say you have a current balance of $2,000 that you can't send to the bank or send to another Paypal, but in the past 6 months you had received 6 payments of $500 from the other account. You can simply refund 4 of these payments to get your money back to the bank quickly.
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If you have not prepared in advance, what you can do is coordinate with past clients who have paid you and refund their payments and ask them to send it to a new Paypal. Recently a friend had $1,900 frozen and we have almost cleared out most of the balance by doing this, so keeping contact info of all of your clients is helpful in these instances. Since I had sent him money before, he was also able to refund about $400 directly back to me which I then immediately deposited.
In the long run, it is better to get off of Paypal completely and encourage clients to use Cryptocurrency, also we have found that apps like Zelle, Venmo, and Cash App are far less restricted if you have to work with fiat money.