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Hi Robin,
I've never heard of paypal being hacked. There is more chance of a trojan virus living in your computer that is remote controlled by the thief in question.
Once the trojan is on your computer the thief can see everything you do, even how you log onto your online banking, how you access paypal (passwords & login info etc...) basically you can get hacked from the inside out. This can only occur if you have run some shady software, or browser related plugin containing the trojan. Or, someone has been on your computer and placed it there knowingly, unknowingly, by mistakingly ok'ing a shady plugin or willingly.
Hope you get it sorted out without any losses.
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