I would call PP to see exactly what is going on.
It seems there have been more problems than usual on the exchange lately. I was about to start listing some knives again, but with some of the problems in the last couple of months I'm a bit leery.
Just sell them how you want, under your own terms.
I am not near as leery of selling as I am of buying. If you worry about paypal shenanigans, just do Postal Money Order only, no international, ships only once the Postal money order is cashed and in the bank.