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Any amount over $2500 is ineligible for small claims. Then you are looking at arbitration out of country, per the contract you signed. Paypal handles arbitration in LUX with a banking court. The process is a nightmare and impossible for normal people.

<$2500 you can do a small claims, singly. But they can negate $2500 in heartbeat for a hundred different penalties and fines. -You'll win in small claims court and still not get your money.