(CNN) -- PayPal has backed off an online spat with humor blog Regretsy after getting withering Web feedback for shutting down a drive to buy holiday gifts for children in need. And the online payments service is even chipping in to help buy a few more gifts after temporarily shutting down the Secret Santa fund because the for-profit site was running it. "(W)e can confirm that the funds have been released and we are working directly with the account holder on this matter," a PayPal representative said via e-mail. "We are also making a donation to Regretsy to help families in need this holiday season. We're very sorry this occurred."
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PayPal backs off Secret Santa dispute with blog Regretsy
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Regretsy's founder says PayPal shut down a fund-raiser
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PayPal said it will now donate to the fund and issue has been resolved
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Regretsy mocks offerings on crafts site Etsy but also gives to charities
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Run by actress-comedian @placeholder, Regretsy is a snarky blog created primarily to mock what it considers awkward, ugly or otherwise head-turning offerings on the arts-and-crafts site Etsy.
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"You people make me sick," she wrote, mocking, as she frequently does, the tone some @placeholder users take when they find their work has been featured on Regretsy.
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She wrote she hatched a plan to return the donations, then "sell" the toys that had already been purchased to the donors, only to be told that, too, violated @placeholder rules.
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(The statement did not directly address whether @placeholder had violated those guidelines, saying it can't comment directly on accounts due to privacy policies).
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If @placeholder is sincere about allowing us to make these gifts, you will have made a difference for 200 children and their families this holiday season."