Technicality, you are right. However, it looks shady as hell, and PayPal typically operates with verification as a need. I'll go ahead and give some benefit of the doubt, but even then, like 99 percent of the people who have a stealth account are doing shit that a lot of places wouldn't call legal, and Paypal doesn't want to be associated with that by default.
If you can't verify Paypal has no reason to unlock your account. You're pretty much at the point where you'll want to burn that account and move on man.