Earlier quoted context omitted.
In other words you're prejudiced and see no reason to logically validate your preconceptions? Great, that's what we need. More people commenting who have all the answers. What if PayPal were telling the truth, how exactly would that situation look different than the one we are in? Good thing PayPal's always wrong though!
It's more like extrapolation from a known set of data points. PayPal has a certain history. You can look up what's gone down in the past, and based on that, the accusations fall right in line with the sorts of things PayPal has historically done. At this point it seems far more likely that PayPal did in fact do what it's accused of than that it didn't. If PayPal is in fact telling the truth (and that's a big if), the…
If you look as far as... oh say, the top of this thread on HN, you will hear accounts from people who have apparently done this very thing (asking PayPal for last 4 digits and gotten an answer). So it seems like their policy did not forbid it, anyone could do it, so why not believe the hacker's claim?
You can't have a policy of routinely giving out certain info then deny that you gave it out in a case where it caused a security breach. What is the defense there? "Well yeah ordinarily we DO give that out but we could tell this guy was a hacker so we didn't." Yeah, they wish. If they regularly give out last 4 digits, then the claim that they didn't in this case is absurd.