Accord01,
I feel for the position you're in, it's beyond shi##y. I would be just as livid and not cutting them any slack, I'd be emailing every single day with the full story of my complaint and your intended actions.
I know that a lot of folks have no problems with Coinbase, and a lot of folks have no problems, until they do, and it's the big one. This cannot be a simple matter of bad algorithms. Once there is a trusted history between an institution and your bank, there should be no reason on the customer side to encounter these problems.
One thing you said confused me. In their email to you it says "since the refund has already been sent out on these original purchases"
So it would seem they're not just saying "No refund for you, sucka" but in fact they think they've refunded you. Admittedly giving you back your money for the purchase is little solace to losing the profits you wouldve made, but at least you're not getting robbed twice.
Now I have a question for you as a relative newb to this space. I set up with Coinbase and submitted a purchase for .005BC last week (very small just to test out "the process") and they just emailed me with one of their "high risk" notices.
Id be happy to kick them to the curb, but need an alternative. I see a LOT of complaints about Coinbase but very few alternatives for US customers.