Can I refund a customer while Shopify has a hold on my payments?

[NorthernDlights]

 Am I able to refund the customer if Shopify has a hold on my payments? I am not able to pay for the refund out of pocket. 
Without any reason (I have never received an email from Shopify and when I contacted support, they had no idea either) Shopify put a hold on my funds a few days ago right after I had gotten an order . I make all of my products by hand, and package and ship everything myself. I do not sell copyrighted products, and I do not sell illegal products, so I am unsure as to why there is a hold. I do not make a lot of sales, but have used Shopify for quite awhile, I have just put most of my focus into getting my Etsy established, I have not had time to devote to getting Shopify site up to par to where I am bringing in regular orders.
 In the meantime, I need those funds to purchase supplies to make the order for the customer. Time is of the essence. Because I am now getting to the point that it is getting too late to order supplies to make their order in time, I will need to cancel their order and refund them. Especially because I am reading that several people are having to wait weeks or months for their payouts, with no explanations.

[ecomalex]

Any update on this? Were you able to refud customers when your Shopify Payments was on hold?