Here is the update. I spoke with someone today at Paypal who promised to take the issue up right away, within an hour the money was released from the hold. About 1/2 hour after that a phone call from a guy at Paypal who explained what had happened . Turns out that AMEX claimed they didn't know it had been submitted and was not pursuing it. The 690.00 was an aggerate amount AMEX was requesting for total chargebacks not just this transaction. Clear as mud but I am happy.