If they already sent the check out then you should be able to cash it. Especially since it's already out of your balance. Did they give you a reason as to why they locked your account?
Have you charged anyone back, because usually they do not close your account for no reason at all its usually because you become a liability to their company.
It usually gets locked if it's not verified and receives a lot of random income, You then have to get it verified and then you need to call for proof of identity.
Never have I ever heard of that, your paypal was probably unverified and you received a lot of income into it, I would ring them back up and talk to them, or even look in your disputes centre and you'll find a place where you can upload documents proving you're this person who lives at this address.
It happens, my friend's paypal was closed because quote "Your activities unfortunately fall above our standards of risk tolerance, so unfortunately we won't be doing business with you at this time." At the time he was redeeming PPMC and triggering their fraud/anti-money laundering system. Not even just limited, actually frozen completely.
This happened to me as well years ago, it was because i was logging into my paypal from multiple IP's (including a proxy) and according to them it was "Highly suspicious and in an attempt to prevent money laundering my account has been closed"
I've never known PayPal to send you other payments than directly to your bank account. I had to upgrade my account to a business account (from a normal standard verified) to actually carry on receiving payments.
Have you had any issues recently in which you've had to file either: 1) A payment dispute? 2) Unauthorised payment claim? If 1, they could simply be looking into it. If 2, filing this claim will always limit your account for a long duraton, if not permanently as it's a very serious matter as they consider you a risk of being hacked/people accessing your account without your consent. Also, regarding the check. I assume you mean that $300 was deducted from your balance as soon as you requested the check to be dispatched. This is standard procedure to ensure you don't spend funds you've already requested to withdraw. On another note, if your paypal is limited to a certain income range, then maybe you've surpassed it which has caused a limitation. Lastly, are you limited for suspicion of money laundering? This has happened to me and many other gold sellers simply due to hundreds of transactions each month. I called paypal support and they removed the limitation instantly as soon as I explained what the investments and gross income was for.