What happens when a seller can't afford a return/refund after 10 days?

Payments + Shipping & Fulfilment
1

I have ready Shopify take 5-10 business days to execute return/refund process and also got the scenario which seller not enough money to refund to the buyer.

Questions:

  1. What will happen to the return/refund if seller do not have enough money more than 10 business days?
  2. When status will change if seller approve the return/refund? Is it after seller approve or after complete return/refund process(buyer got all the refund money)?
  3. In what status buyer can request for return/refund?

Hopefully you can help me. Thanks!

2

Continue from question 3: is it means,

  1. Buyer still can cancel even the parcel is in shipped status?
  2. Buyer can request return/refund after cancel the order?