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Authorized. Didn't send. Steam won't claim the funds, so they will be on hold for 3-5 days, depending on the bank. Steam never received the authorization, so the payment failed.
Because you never got the game. The purchase never went though, and so Steam couldn't verify that you were purchasing the game. The funds were requested to be sent, but somewhere between the funds being sent, and Steam confirming that you have purchased the game, an error occured. Steam never got the final "word" saying you've purchased it, funds were being sent their way, but denied the transaction because your purchase didn't fully go through.
The way it works:
This is a simplified version, but it gives a general idea.
You didn't lose anything. The bank will release the funds when their internal policy allows it.
You can but a wallet card, but your current card may still work after the amount gets released back to it.
Unless he bought it as a gift and intends to send it to his main account.
Hopefully that's what happened!