I'm not sure if she still has a "no refund" policy anymore, but more of a "no money to refund people with" policy. Wolfhome's currency is deltas, and they are only useable on the website to pay for a subscription to the chat. Deltas are worth 50c real money for 1 delta.
Some people have paid with deltas, and some people have paid with real money. I know of at least one person who paid with real money and got a delta refund, but I am not sure if this was acceptable to the person or not.
Of course, she can't refund people with deltas anymore because she was banned for taking a bunch of commissions and never finishing them, thus scamming basically the whole community, and also selling deltas she didn't actually have.