Regardless of whether or not there was a mistake in allowing the PS ON account to be opened, they should be returning the money that was deposited not confiscating it. they are allowed to confiscate his winnings though probably .
Calculating the Cash Out Amount\n\n We apply a 2% cash out fee on value of your hand (not the entire pot), deducted prior to offering the cash out amount. You can opt-out from the All-in Cash Out feature entirely via the 'Settings' menu.