So I purchased an item from a company using PayPal. I needed to return the item for a refund and followed the process the company provided. After the up to 15 days to receive a refund passed, I contacted the company. They requested a tracking number for the returned product, which I provided. Once I provided them with this, they stopped contacting me. So I filed a dispute via paypal. Now the company has emailed me saying they have tried to refund my money but they cannot because of the PayPal dispute and are asking me to dismiss it (so that they can). This sounds like they're not going to refund me my money after cancelling it and they just want me to cancel it. So my question is: while a buyer has filed a dispute against a seller in terms of not receiving a refund, is the seller una legal to provide said refund while there is an open dispute?
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