Yeah, that is a possibility sadly. Unfortunately there's no way to verify the reasoning, or their age, or even that they are the owners of the card.. at least I don't think so?
And yeah, it might be worth me contacting them again to ask them about that, see what they can tell me and see if it's even an option for me. With the amount of people I know are fighting against this, I am hopeful that some positive outcome will happen for us affected anyway. Paypal on the phone told me that I wasn't the only one affected by this claim and told me the same - that the more people fight it, the more likely Paypal will investigate the account attached to that card/bank. They couldn't tell me more obviously, but at least I know I'm not the only one officially. Which is both a comfort and disheartening all at once ahah.
Thank you for the suggestion though! I'll see about giving Paypal a ring later, and see if I will be able to get some compensation, even in the event this somehow doesn't resolve in my favour. Tbh, it makes sense I would be able to, because whatever the reason is I'm not the one at fault at all, so surely there's some safety net option. At least I hope so, especially for those affected by larger amounts than me.