I never keep money in my PP account, I'll go buy something using my PP master card (gives money back when you use it, got $150 back last year by simply using it..... no brainer) and use up the balance or simply transfer the money to my account.
FYI transferring or using up the Paypal funds has absolutely NO impact on protecting yourself... if a case is filed, Paypal will still deduct the funds from your account even if your balance is $0 -- so your account will be in the negative. If the case is not resolved then Paypal will withdraw the money from whatever account is on file (Paypal Mastercard, Bank Account, etc).