Should have articulated this better in the original post [I am not a lawyer so I'd suggest talking to yours to nail it down.]

1. 1099-k: over $20,000 in goods and services sales and completed 200 transactions.

There is an Etsy link quoted in the comments that explains Paypal's role in these transactions clearly.

2. 1099-MISC forms: Paypal used to issue 1099-MISC. They stopped issuing these since they discontinued the option to direct debit your money market account for payments.

Hope this clarifies.

[Edit]-just got off the phone with Paypal support and they confirmed that they don't issue 1099-Misc

[Edit-2]-proof why things like this are a time sink! outsource and get back to building product and talking to users.