Klarna. Company asking me to 'cancel return' so they can refund me?

[Lafawnda]

I bought a coat through Klarna.
I returned it and notified Klarna and uploaded the tracking. Klarna paused the ongoing payments whilst the return was processed.

The parcel arrived over a week ago, so I contacted the company to ask if my refund is processed.

They replied saying they tried to refund me but there is an open chargeback so they cannot.
They said to cancel the chargeback and they will refund me asap.

I have not done a chargeback with my bank so do they mean the paused Klarna payments?

I don't want to go on Klarna and click 'cancel return'as then I am liable for the payments?

I don't want to cancel the return as I have completed the return and they have the item and my money!

Ask Klarna customer service.

I will bit Inwas wondering if anyone knew if the klarna pause could be what they are talking about.

So Klarna have said not to cancel the refund as I will be liable for the rest of the payments. And the shop have said they can't refund with the pause in place 🤨