How does cancelling a whole order release stock and handle refund/void?

Cancelling a whole order before fulfilment releases the reserved/decremented stock back to inventory and handles the money per the order's state — refunding a captured payment or voiding an uncaptured one. So a cancellation cleanly reverses both the inventory and the financial effects of the order. The exact handling depends on where the order was (paid vs pending), but the…

Cancelling a whole order before fulfilment releases the reserved/decremented stock back to inventory and handles the money per the order's state — refunding a captured payment or voiding an uncaptured one. So a cancellation cleanly reverses both the inventory and the financial effects of the order. The exact handling depends on where the order was (paid vs pending), but the principle is that cancelling restores the world to as if the order hadn't been placed, with an audit trail.