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https://support.steampowered.com/kb_article.php?ref=1122-RTSC-0478#transferred
To repeat as Anonymous Helper stated above, there is no function within Steam that allows you to move Steam Wallet funds to be withdrawn.
The reason why most services don't allow funds to be transferred outside the wallet, such as PSN, XBOX, Nintendo, Steam, basically almost any store that has a wallet system, is due to fees to transfer money, and the fraudulent activity people try to commit, such as money laundering being one of the biggest reasons.
Can you ... explain that a bit? What exactly does this even mean? Is there a balance somehow being shown that is not correct?
Also if your 'friend' is trying to get YOU to help him on moving funds, do not do so.
Coinstar isn't a thing you can refund TO. If the funds were never in their paypal, this isn't a thing that can ever be undone. If they have a paypal that this wallet fund used, IF they have not touched their wallet and IF it's been (what, still 2weeks? I cannot remember if it's different from normal refund-window use) under the normal refund window time, they should be able to put it back into paypal.
They need to do this themselves, and if they have a problem with it, they need to post this situation for themselves instead of talking through someone else. Because invariably there are things missing from these kinds of stories. Usually important things left out because it's a scam, a sham, or a very, very bad error.