Etsy apologized for a major issue some European sellers are dealing with that looks quite costly, but it refused to provide details about the nature of the problem publicly - instead, moderators have told sellers repeatedly to check their email for more information.
In a nutshell, it appears there was a currency conversion problem that caused Etsy to undercharge buyers, and then it cancelled the orders and took money from the sellers' accounts to refund the buyers, even after sellers had shipped some of the orders. According to sellers, compounding the issue was the difficulty in getting answers from Etsy.
On Thursday evening, a jewelry seller based in Iceland
said Etsy had canceled 15 of her orders that she had already begun manufacturing. A little later, she said Etsy had begun to refund her customers for those orders, taking the money out of her account.
Other sellers reported the same thing was happening to them - "I have shipped out more than 200$ worth and now the orders have disappeared as well as the funds?! Etsy is not even replying me via mail and "are having difficulties' calling me," a Danish seller wrote.
Another seller from Denmark said the same thing had happened to her, and she had also already shipped some of the orders: "The same thing has happened to me, it's horrible! 10 orders disappeared, all from Wednesday and Thursday. And some of them I have sent and I have booked UPS to pick five of the vanished orders up tomorrow. I really don't know what to do. I think it's due to an error there was with currency conversion, I find it strange that Etsy haven't contacted us. Two customers contacted me, they had received an email that the order was canceled."
On Saturday afternoon, a couple of sellers said Etsy had repaid the money for orders that they had shipped, but were still uncertain about whether Etsy would honor all of the orders they had received that had yet to be shipped.
Surprisingly, a Danish seller had informed Etsy
about a problem with pricing, and Etsy acknowledged there was an issue with currency conversion. But nowhere in the threads about cancelled orders did Etsy mention there had been a problem with currency conversion - and the Icelandic and Danish sellers posting appeared unaware of the bug that a seller had warned Etsy about on Wednesday.
On Saturday evening, sellers continued to express confusion and concern about their accounts, and they also wondered whether Etsy would refund selling fees on cancelled orders.
Those not impacted directly were also concerned about the way Etsy handled the issue in the days following the initial bug.
Update 10/25/17: See the new blog post published on October 25th on how Etsy handled the issue.