The service which is in question will be suspended while the result of the dispute are pending. This is done because paypal have put a hold on the money you paid for a service which relatively speaking means we haven't been paid so we will not provide a free service.
In the event that you are succesful in your dispute your service will automatically be temrinated and the normal cancellation procedure will be in place with regards to domains for life.
In the event that you are unsuccesful in your dispute your service will automatically be unsuspended.
We would also advise customers to first talk to the support department before doing so to attempt to resolve this matter first.