i tried calling today and they are off for the weekend. i responded to the e mail and asked for him to explain it to me. the e mail came from paypal with his name and a transaction number but i can't find the transaction i will call monday
Don't wait and not do something. Here's a list of actions/questions.
Does the sender's email address and/or the reply to address show PayPal? If so, that means nothing. Those addresses are easily spoofed, and always are by scammers. You really should not have replied. That simply confirms to the sender they made a good hit.
Expand the header for the email. You will see several entries for "Received from" followed by "For." This gives the trail where the message came from. If any of them look suspicious, then the email was most likely a phishing email.
Do you have the same password for PayPal and eBay, or have it set so eBay can automatically connect to your PayPal account? If so change your PayPal password NOW! Remember on the news a week or two ago about eBay accounts being hacked? You may be one of the unlucky ones. If you can't access your PP account with your current password get on the phone with them or eBay. Your account has been hacked.
I really doubt BakerBuilt website has been hacked. More likely your email was harvested from the computer of some individual with whom you have corresponded. Personal PCs are thousands of times more likely to give up your address than is any business computer. People are derelict in keeping internet security up to date on their personal PCs.
Do you use a credit card or direct bank withdrawal to make your PayPal payments? If a credit card then your CC may have been compromised. It happened to my Amex account last December.
IMO, since you replied, the email purportedly came from PayPal coupled with the use of the Baker Built name for a seller who you just did business with, and the fact that eBay was hacked recently, you are at VERY HIGH RISK of having your PayPal account hacked.
