The problem with this method is that the person who sent you the money will likely re-call it as soon as possible. This is why you need to spend the money quickly and ensure it's on something you can get right away and not have to wait long for. In my experience you can't wait more than an hour, on some occasions the person will wait longer but usually it's within an hour.
To answer your questions if you transfer the stolen money into another Canadian PayPal and the person who send it re-calls, they will also take the money and freeze transfers to any other accounts involved.
I've done extensive testing with PayPal so I know very well how there systems works. Any PayPal e-mails involved in a dispute will have the money frozen until the investigation is complete. I've taken stolen money and transfered to one other account before, and I've also taken stolen money and transferred to multiple accounts. Every time PayPal has frozen the funds in ALL e-mails associated with the original transfer.
For a simple answer, you should just spend the money on something you can buy quickly. I would recommend setting up a sale with someone private party and holding them off until you have the money in the PayPal account, once you get the money submit the payment and hope they deliver the information quickly. They will get the chargeback and as long as you have the account information and the e-mail you just need to transfer the character(s) to a new account, ban the original, and your good to go.
Of course you can always try buying cd-keys or gold but most of those sites are unreliable and often you will find your PayPal being frozen before they deliver your goods to you.
GL anyway, hope this helped.