Same happened to me AND they refunded all money back to people I had already mailed items to!!
Here is a good way in US to get reinstated and make a bit of trouble for feebay too. Write a detailed letter to your state's Attorney General. Give lots of detail, including your fees paid each year, how many items you sold, your earnings, etc. Take my word for it, they are very interested, especially in the fees you paid for getting shabby treatment. When they heard I paid $5000+ fees a year the Attorney General's office ears perked right up!!
The Attorney General's office will contact feebay directly and give them a deadline to reply to you. All of this correspondence stays on file for several years so anyone in the public can access it.
In my case process took months and I did get a direct phone call from some dope at feebay who still could not figure out why/how it happened. I suspect rivals too as the feedback was getting nasty BUT I also had virus contamination that marked paid items unpaid too. Feebay took more than a month to fix and never corrected anything. I did not get a settlement but I did get my name cleared on feebay.
I was reinstated about 4 months after I was suspended BUT I had missed the whole Xmas season so I do, lost a lot, including items I mailed but feebay decided to refund for.
In any case, the phone person was still kind of spunky, I was reinstated but they were going to watch me close, etc. I promptly told her I had started my own web site, joined ebid AND taken the names and addresses of 6000 past customers with me!!!! She did not say much after that.
I mailed out postcards and emails telling all I moved, and moved on. I know it does hurt, but if feebay supports such antics, poor policies, etc, they deserve what they get. If you need email addresses, go into paypal and pick them up there.
Note that feebay's sales are down from high of 100 million auctions a day to 24 million!!! (see powersellersunite.com for daily stats of all auction sites) so they ain't doing too hot.
Oh, never never use the name ___bay again. It is searchable.
Peel off your feebay car sticker and add one from ebid (it comes with your free t shift for one buddy point).
Wear your ebid t-shirt proudly and give info to anyone who asks about ebid. Get all your old customers to join (espec. those who bought a lot) and sell (you earn buddy points). New customers who spend money help all of us sellers (we are 500,000 strong now!!!).
Throw away your feebay pen or sell it on ebid!!
Start your own website (godaddy is cheap, I have a 5 year website address and have a shoppal store, store is only $10 a month) and work at marketing that via the various search engines. Once it gets going, add the ebid icon and direct your customers to shop your site and your stores on ebid!!
I wish someone would start a class action lawsuit (I saved all my info) but don't know how to do that. If someone does, we stand a chance of getting some money back. Someone wiser than I needs to look at all these stories.
Good luck, take a breathe and start a new life. Welcome to ebid!