Your total "logical" explanation ignores the most fundamental logic of all - its so obvious that even a child would tell you = you don't mark something filled if you didn't really fill it!
This is the worst example of someone not listening to problems but explaining why their system works the way they want it to work - the mistake you're making is YOU ARE NOT THE CUSTOMER - we are! Learn that or you can find out the hard way that you don't have any.
My suggestion is simply remove the "unfulfilled" status from "new orders" because it's confusing everyday to look at the shop and see orders but not know if those are new refunds that were not marked "fulfilled" before refunding or actual new orders.
Lastly - the most obvious problem is that you can't just automatically have the system mark the order as "fulfilled" when any of these actions occur: "refund, partical refund, or cancelled".
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