I also believe that is completely incorrect. There is no ebay guarantee limit that I'm aware of. Paypal also has no limit that I'm aware of. And if there is one I'm sure it's much higher than 4k. The warning you may have seen was probably telling you that your paypal account might not process the large transaction.
As I was writing this I felt the need to look it up just in case. Straight from the paypal website:
13.4 Coverage Amount. If you are eligible for PayPal Purchase Protection and PayPal finds in your favor on your Claim, PayPal will reimburse you for the full purchase price of the item and original shipping costs – with no cap on coverage.
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Successful transactions with peter spaeth, don's cards, vwtdi, wolf441, 111gecko, Clydewally, Jim, SPMIDD, MattyC, jmb, botn, E107collector, begsu1013, and a few others.
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