That sounds like:
A) They found a loophole to close cases. (stonewalling)
and
B) They are committing fraud if they claim an item has shipped and are aware that it hasn't.
Thats enough to kill their account.
From what I understand, their account is already dead. Supposedly they're taking Dwolla now, maybe someone should contact them and get that account shut down as well. Dwolla probably doesn't want to be known as a hotbed of scamming.