Yeah, surprised me PayPal doing this though because I've had my business account with them for years and make and receive payments frequently, so I'm not sure why they singled out this one. Maybe it was just random.
Also kinda worries me that Steam would disable your entire account for a problem with one game. It was the only game I had, so it didn't really matter, but if I'd had other games in my library, which I wouldn't have been able to play then that would have been really annoying.
From Steam:
"If the dispute is closed and the funds are released back to Steam, the account will be reactivated. However if PayPal closes the dispute by Reversing the Payment, meaning they send the funds for the purchase back to you, the Steam account will remain locked and you will lose access to all of the games on the account. There are no options to resolve a dispute once PayPal has closed the case."