It is very frustrating that actually resolving a customer's request is not considered as a message response...
I just missed out on the Star Seller badge this month because I did not answer in the chat, although I had cancelled the customer's order (as requested) and answered to him in the cancel form. This should be addressed ASAP.
@3DMarketStudio: No argument that some things should be more integrated, but unfortunately the Etsy rules are clear : you need to reply to the FIRST message of EVERY NEW INCOMING THREAD within 24 hours for Star Seller. It does not matter who sent it, the subject matter, if it is a duplicate or blank or anything else. If it is SPAM then it should be marked as such.
"This should be addressed ASAP." Having designed systems like this in the past, the problem is how to know which message thread a cancellation should be linked to - particularly if the customer has opened a Help Request, which by the way starts the clock ticking on a potential claim. We often have multiple threads with the same customer and I can easily see the automation guessing wrong.
You are the only one who can address this, Etsy will not. The rules have been clear from the start and whether we agree with them or not, if you want that badge you must comply. Etsy even labels messages that require a response with a blue banner in the message space, so there is no real excuse for missing it. Messaging is the one criteria where the seller is in complete control. You can try marking the one in the message list as spam now, that should remove it from your stats in a day or two, so it won't count for the October badge, but it will NOT change anything for the badges just awarded. Etsy has made it clear they will not retroactively adjust the badge decision.
A message is a message.
An order cancellation comment is an order cancellation comment.
Etsy's system isn't sophisticated enough to scan all the things and make conclusions....