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I figured out the scam and wrote it up here: https://www.reddit.com/r/Scams/comments/1j9u5wp/legit_signed_email_from_paypal_but_833_6662587_is/?

Basically, they set up their merchant account with a merchant name that is literally, "If you do not recognize the seller, please contact.." hoping you don't notice all the other wrong details. But this does get them a legit email with a digital signature signed by the real paypal.com, which they forward to you.