Thats BS, see where the package goes and make sure no other confirmed addresses were added to your account. Sounds like Paypal is protecting their "ASSets" in your case. If that tracking number does not go to a address not listed with AMEX, they should be able to deny the claim and then paypal will eat it

Previous Owner of 00 SVT Contour #1077/2150 95 Contour SE '01 3L