Please tell me that when you logged into PayPal, you did it by typing "paypal.com" into your web browser, and not by following a link in that e-mail ... because those e-mails are usually phishing. They give you a link that looks like PayPal, but it's not, and then you enter your password and, bam, they have access to your real PayPal account.

If you followed the link in that e-mail, you should go to PayPal right now and make sure things are okay.