Yes, you are incorrect. You should read my comment again. If you transfer the money out, they will debit the bank account linked or the credit card. It will go through even if you don't have the funds in your checking account linked and it will overdraft your account. I've been on that ride numerous times with scammers, I even set up a separate checking account that I only use for paypal and keep a minimal balance and they still pull it out whether I've transferred it out or not.
Bottom line, if a buyer wants to screw you over they can. Paypal does not care. That's why as a seller you shouldn't use paypal for any amount that you aren't comfortable with losing.