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Did they? I don't see it in their current AUP:

That's why I deleted my account and won't use PayPal again.

What is the definition for "misinformation" that they use? Is it ok if I'm wrong about something from time to time?

I don't think they set one. Its better for them if its vague.

part of the problem is that they used a definition so large it could include anything that may be offensive to a paypal employee.

Afaik, there is no definition, its arbtitrary so they can charge anyone.

Wrongthink of any sort.

Selectively and retroactively enforced, probably.