Chargeback came in before the product even shipped

Got an order for $290 worth of skincare products on a Wednesday. Started processing and fulfilling Thursday morning. Chargeback notification hits my inbox Thursday afternoon claiming unauthorized transaction. The package hadn’t even left my warehouse yet. Immediately cancelled the shipment and submitted proof that nothing was delivered. Lost the dispute because the bank said the charge was still processed regardless of fulfillment status. So I’m being penalized for a transaction I literally stopped before completion. Does this make sense to anyone or is the system just fundamentally broken?