Small Claims Court for Payment: New York

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Illustrative scenario prepared by my practice.
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Hypothetical question

EDIT: added more context below. Ngl i've been trying to resolve this in New York on my own but I'm stuck imo.

Etsy holding funds for 45 days. I've been dealing with this for about 8 months now and the situation isn't improving.

Am I overthinking this or is this a real legal issue worth pursuing?