LocalBitcoins Vs Paypal

I would like to bring light to this issue between Paypal.com and LocalBitcoins.com. I have been using paypal as my mode of payment online for a while now. I use paypal to receive payments from localbitcoin market until the other day I got shocked on the decision paypal submitted to one of my client account after trading on loalbitcoins. This is what happened. I traded for my client and he received payments on his paypal account. He went through and withdrew the funds over sudden the buyer reversed the payments and that's how my client got a -ve sign on his balance. Question is who's going to pay for that. My client or paypal!! I feel its more of paypal because they can't enforce their loop holes to the paypal community. If someone hacked a paypal account and he used it to pay for goods online, who is supposed to take the blame. I guess not Paypal right!