could you maybe use venmo or cashapp as an alternative?

My understanding is that both the policy and $2,500 fine have both already been in existence for 2+ years.

The resurgence on Twitter is just (despite what the original poster said), fearmongering.

My advice is to make a new PP account and don’t mention you use PayPal unless it’s in DM’s and discord

well, i hope this all sorts out at some point

From what i understand it's already been a thing for a while, just that it's been reworded recently and someone spread it around saying "PAYPAL GONNA CANCEL THE NIPPLE!" with no true confirmation of such.
Smart thing to do would be to hold tight until all the facts come out but from what i see it's mostly fearmongering.

My dude it's just fearmongering, they can't know for sure what you're getting the money for.

The agreement stuff has been there for years and is poorly worded and rarely enforced. Every time PayPal updates their user agreements people see this part and freak out like it’s new all over again.