Think who this is targeting
As much as I welcome Paypal's fall from grace, and hope the run on its funds caused by people closing their accounts leads to financial difficulties, I don't think this was intended to target consumers.
I think this was Paypal's way of trying to prevent sites and organisations using the service to receive payments and raise funds, while promoting causes with which Paypal disagrees.
To use an example from the past week, if I was hosting a site that provided people with accurate information on COVID vaccines I would have posted onto it details of the recent announcements by the Florida Surgeon General. Paypal would class that announcement as misinformation, as it goes against the vaccine message being pushed by the US Federal Government, and seek to remove their association to me. This clause would allow them to further charge me 'liquidated damages'.
But that's also why it was such an insane clause to add. Citing the Florida Surgeon General is obviously not misinformation. It's just different information.
Biting the hand that feeds IT
