UK website The Register is reporting that eBay is experiencing a "cross verification bug (http://www.theregister.co.uk/2007/01/02/ebay_bug). They are referring to the process of sellers linking their PayPal Verified accounts to their eBay accounts.

AuctionBytes could not confirm the problem with eBay before press time, but such a glitch could not come at a worse time if it does exist. eBay is currently requiring sellers to link their eBay accounts to PayPal Verified accounts if they want to sell designer goods. The requirement is part of the site's anti-counterfeiting initiative announced late last year. In addition, PayPal Verified accounts are crucial for cross-border selling - users must be PayPal Verified in order to list an item on a different eBay site from which they initially registered.

Update, 1/3/07: PayPal spokesperson Sara Bettencourt said there was no site-wide bug involving PayPal Verified accounts, and that a customer support representative had mistakenly told a blogger through the Live Chat function that there was such a problem.