Product: Debt collection

On XX/XX/XXXX, I recieved money as a friends and family payment with PayPal. On XX/XX/XXXX, I was notified by email that the person who sent me the {$2000.00}, reported it as fraud to their bank so in turn PayPal took the money back from my PayPal, which put me in the negative as I had already transferred the money to my personal banking acct. I immediately contacted the person who sent the money and they called their bank to let them know it was a valid charge after all. They just lost their husband, who used the card and she didn't know it was approved by him since she took over his finances. I also called PayPal to let them know of what occurred and they said not to worry that my account was notated and that it could take up to 75 days to get sorted out but it was fine to keep my account in the negative as they do not report to collections and/or the credit bureau XXXX I assured them if it was going to be an issue, I would send the money back from my bank acct to PayPal until it was sorted out, was told again no need to worry. On XX/XX/XXXX, I got an email from PayPal stating they sent my account to XXXX XXXXXXXX for my debt and I would need to contact them moving forward. I immediately contacted XXXX through the PayPal phone number and told them what happened and asked why I was told this would not happen, I also told them that I sent the {$2000.00} back from my bank acct to PayPal and there was no debt owed to their company. Exactly that evening while I was asleep, I myself was then hacked with my PayPal account. They used my PayPal to make purchases of XXXX XXXX to XXXX. The following day they also bought dog food with XXXX and sent dog food to XXXX different people all over the US. When I notified PayPal, they did absolutely nothing to help me and said that because they were apart of my recurring transactions that I allowed these purchases and made them myself. I did not. I am now out {$2000.00} for PayPal, which has now been held from XXXXnow, and XXXX confirmed they gave PayPal their money back but they won't put it into my acct yet. I am out over {$700.00} in other fees and purchases. Which then I had to get new credit cards, bank cards, and freeze my credit. I had to transfer money around to make sure no more came out of accts, which resulted in fees galore. My XXXX XXXX  was my XXXX which was used on my PayPal, they froze that due to strange activity. I am a single mother and have had so many issues since this, I want to know if PayPal and XXXX have a hacker among themselves, if they are allowed to not tell you prior to sending you to collections that you will be if the debt is not paid by a date, how any of this is even legal and who looks into this XXXX as they have XXXX complaints with the XXXX  alone for fraud and lies. How can PayPal allow this to happen to me when they have so much power and then when I reported the fraud NOT ONE person there helped me. They didn't tell me I could add an additional protection onto my acct and have a 2 step authentication with my phone number. They need more training if they have access to people 's bank accounts! I will NOT stop until something is done to PayPal so they are mandated to protect future people and banks and their accts. Find who the hacker us within PLEASE!