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Hey I was wondering if this was possible. I cannot seem to find any relevant documentation, and the only way I can currently do this is manually in the shopify admin.
Alas you wouldn't be able to change the on_hold status on the Fulfillment Order resource(docs). You should be able to identity if an order is on hold through the API (in > 2021-07), by pulling down the associated fulfillment orders and looking at the status field if it helps though. Checkout the Developer Changelog for further detail on the release. Thanks!