Whenever a dispute is opened on a booking, either by the host or by the guest, the guest's security deposit is placed on hold until the dispute is resolved.
The dispute resolution process may require a refund to be issued to the guest, which would come from the host's payout or it may require an additional charge to the guest, which would be deducted from their security deposit.
For this reason, the security deposit is put on hold for the duration of the dispute process until its final resolution.