Does Account Health affect organic sales?

I was selling 4-7 units per day (My second month on amazon) organically without PPC for all of this June.

Suddenly my account health got lowered due to my parcel company losing one of my parcels and the customer got angry and claimed a refund which affected my order defect rate..

My accounts on “Risk of deactivation”

and I haven’t sold a single thing in the past few days even with a 1000+ ASINS

Does account health stop organic sales or something? Anyone experience anything like this?