A few weeks ago I started receiving notifications from PayPal to re-verify my account information. I knew what was coming next - "limiting" my account - because this is at least the fourth time that PayPal has pulled this stunt on me (and countless others).
As with anyone this happens to, you account is only "limited" when there is a decent chunk of change in your account. I've never had it locked up when the balance is low (as it normally is).
Sure enough, despite re-sending the required documents for the fourth time, my account was "limited".
Thankfully, I only use PayPal for some personal purchases and only when no other option is available.
If you are one of those people unfortunate enough to be relying on PayPal for your business, all I can tell you is to find another way of accepting payments.
PayPal has been fined for this type of behaviour in the both the US and EU. Apparently, however, they are making enough money on the interest from "limited" accounts that continuing to do so is worthwhile for them.
My online business switched to Stripe a long time ago and we haven't had a single issue.