Why are my refunded orders removing points, and what happens to tiers? (Essential Loyalty app)

When an order is refunded, the app removes the points that were earned for that order. This keeps the points balance correct.

How points are removed

Full refund: all points for that order are removed.
Partial refund: a matching share of the order's points is removed.
Excluded products: if you refund only excluded products, no points are removed. For mixed refunds, only the eligible share is removed.
Cancelled orders: a cancelled order that was not refunded does not remove points for normal (non-B2B) orders.

Points already spent are not restored. The removed points can make the balance negative. The customer's future points repay the balance first.
Lifetime points are not reduced by refunds.
VIP tiers do not go down because of a refund. Tiers only move up when a customer qualifies for a higher tier.
Birthday and referral rewards are not reversed by a refund.
Timing: refunds are processed when Shopify sends the refund. The app also checks for missed refunds once a day.