Refuse to refund is very bad move.
Since the account is generated by the game, the genesis hive keys is belong to the game.
The stolen DEC is in game, the game have totally authority to manage the in-game asset.
Yet they refuse to refund?
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Did you disabled the active-key requirement to transact assets in the game. Picture above. If you did, then anyone with your posting key could have done this. Your posting key might have been compromised earlier and that gave the hacker further opportunity. If you haven't then you leaked the active-key too.
The account that creates your account has nothing to do with this. You own your keys, not splinterlands.
In-game DEC is still yours... but if the above option changes... then its a big risk if your posting keys are leaked (because they will allow DEC/assets to be moved without active key).