When I raised the dispute, I detailed ALL the information and the reason. It was not a complaint.
Someone at E.A authorised the refund on the basis of the information I gave them. They knew it was not fraudulant activity, all they had to do was read the dispute.
"I am requesting a refund owing to case number xxxxxx-xxxxxx"
Not
"My account was hacked, I did not authorise this purchase".
Am I missing something you raised a paypal dispute, I assumed this was with paypal. So you have one company trying to issue you a refund, but before they can, you have the other company, paypal, reverse the charge, commonly done with hacked/fraudelent use, as in, someone finds out and reverses the paypal charge.
EA will when trying to do a refund, see a reversed charge, and assume something dodgey is going on? As someone else had said, I think almost any company would react the same.
Essentially ignore the refund part, you made a payment, the payment apparently happened, then they see the payment reversed over a dispute, what should they do at this point? In 99/100 cases in this situation it will be someones hacked account trying to buy things and banning the account is the safest method to stop anything else being done.
I also assume you wanted them to refund the difference, IE say the membership is £10, and paypal charged £14, they were going to refund the £4 but in the meantime you filed a dispute and paypal reverse the full £14 charge. What exactly did you expect EA to do at this point.
I'd prefer my account was banned temporarily so someone didn't manage to put through loads of orders for any reason and cause havoc while they are unsure whats going on.
Sometimes companies, like my M&S credit card, are WAY to over the top in refusing orders and locking a card down to check whats going on, sometimes its a case of safety/security first over a day or two inconvenience.