Withdrawal issues when using both Stripe and PayPal

I (platform) can’t approve a withdrawal request for a vendor, when customer pays with PAYPAL.

When customer pays with Stripe it’s no problem. Customer makes order, Vendor marks order as “Complete” and an automatic withdrawal is raised which is automatically aproved (I assume via Stripe Connect).

Note that the Withdrawal Settings are:

Withdrawal Mode: “By Order Status”
Order Status: “Completed”

When a customer pays with Paypal it’s a different story:

So, to replicate the problem, I made the following payments:

Customer: bought an item for $10 and paid via PAYPAL
Platform: receives $10 (minus PAYPAL fees)
Vendor: marks product as “Complete” and a withdrawal request is raised for that transaction. In this case it needs to be manually approved by the admin.

The problem is when you want to approve this request as the admin, it won’t let you as there are “insufficient funds” in Stripe Connect. (Error message: Withdrawal Requests partially processed, check log for more details.)

However, this shouldn’t be a problem as Stripe should be able to go into negative and debit money from the bank account?!

Can you help please?

Error code below:

{
“error”: {
“code”: “balance_insufficient”,
“doc_url”: “https://stripe.com/docs/error-codes/balance-insufficient”,
“message”: “You have insufficient funds in your Stripe account. One likely reason you have insufficient funds is that your funds are automatically being paid out; try enabling manual payouts by going to https://dashboard.stripe.com/account/payouts.”,
“type”: “invalid_request_error”
}
}