If he's asked you to pay by Paypal gift it's a breach of site rules, and something you shouldn't have agreed to do.
6. When using Paypal as a payment option, under NO circumstances can a seller request the payment be made as a "Gift", nor shall the buyer Pay as a "Gift" . Sellers may not charge the buyer extra fees for paypal, this is a site where you can list items for free to a very large range of people in the same hobby, we don't charge you to list, so you should factor any paypal fees into your selling price.
His account is suspended but not for any instances related to sales or trades.