I have recently lodged a dispute (my first one - so I am not sure how this all works?). The seller emailed me and said they cannot refund during a dispute state and that I need to cancel the dispute and then they will arrange a refund. It doesn't sound right - Is that correct?: This was their email: "Dear buyer, please cancel the dispute. PayPal does not require any dispute before the refund. Orders cannot be refunded in a disputed state. We will arrange a refund for you after the dispute is resolved. Best wishes".
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