Can Seller refund while it still says payment pending?

[Sierra007]

So I sent money to the seller for a computer. They took to long to respond to messages so I said never mind, can I just get my money back. The transaction is listed as completed in my activity and the money has been removed from my balance. However the seller is saying that they cant refund me because my payment is still pending and if they try PayPal will take the money from their personal checking account. Is this true? Why cant I just get a refund if the funds are still pending and why would it come from their account.

I saw a similar post where the seller was able to refund the money and it came from the pending charge. 

[Sierra007]

And yes I have a dispute open but it wont allow me to escalate to a claim yet, to give time for the item to deliver. However the item has never been shipped since the seller was waiting for the funds to cease pending and then ship me the item. 

[kernowlass]

@Sierra007 

The seller can only refund via cleared funds in their balance OR from their bank account.

If you have just changed your mind then it would be fair to wait the 21 days for the funds to be cleared and the seller refund BUT they will lose the fees they were charged when you paid so you may want to accept a part refund minus the fee?

Your other option is to file a dispute for non receipt of item to get a refund more quickly BUT you risk the seller sending the item and so the dispute would be closed so best to work it out with the seller?