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Edited a bit to avoid confusion.
There's strict laws about money laundering and such that prevent thigns like this being done.
Wallet funds are refundable if they are not used at all,
Meaning that if you make any purchase at all after adding the funds to wallet, even if it's just $0.10, will make the wallet funds not refundable anymore.
Again, there are rules about this sort of thing.
STEAM WALLET REFUNDS
You may request a refund for Steam Wallet funds within fourteen days of purchase if they were purchased on Steam and if you have not used any of those funds.
When you make a purchase like this (Steam Wallet funds) you are using say, your bank card to do so. So that can be refunded to your card.
However, this was the REFUND of a game. So the game was bought with the card. Then they requested the money back FROM Valve and to put it in their wallet.
Now, they may see that as a separate transaction, because frankly it is.
That's all. But one can onyl ask I guess.