What should I do?

THIS TRANSACTION INVOLVE A HIGHER THAN USUAL RISK AND WE WILL RELEASE YOUR PAYMENT AS SOON AS YOU SHOW PROOF OF SHIPMENT TO YOUR CUSTOMER
I have never seen that.

So seller shows you, the buyer, a tracking number, buyer clicks on something on PayPal site, PayPal releases the funds?

What if buyer doesn't click on the release funds button?

What if seller has a tracking number but doesn't put the item in the mail system?

I wonder what makes PayPal flag an account that way?