She sent me an email saying that's why she had to do it - she'd sold about 8 items in 24 hours and it would cost her $120 in postage which is why she needed the funds to clear. I get that.

Unfortunately seller's aren't allowed to say they prefer methods other than PayPal anymore . They have no choice but to accept PayPal and aren't allowed to say they won't accept it or their listing will be pulled. (Guess who owns PayPal ).
That's carp. But I'm glad I know that now, it's made me a lot less cranky at the seller and I won't leave negative feedback now. It's not her fault, but it still sucks!