Okay, it sounds like your password ***** compromised, and somebody else logged in to your paypal account, and quite possibly changed your paypal password. They aso made some purchases using your paypal account.
Honestly, you shoudl LEAVE the account closed, and leave it be.
Open a NEW account, and reEstablish your banking info, and other personal information. If you get duplicate errors, you will need to contact Paypal support.
I can certainly help you, but it would be more of guidance, than fixing the issue for you. I can be your consultant for the time being, until you get the problem resolved. If you truly wish to keep the Paypal account, you will have to send in documentation that identifys YOU as the actual account CREATOR and holder.....since the password ***** not be used. But i recommend a new account be created instead.
Do you use the same password ***** your E-mail account, as you do for your paypal account?