Michael, just a suggestion. Perhaps you should let us know the name and contact info of this "Supplier"?
1: We will know never to do business with them.
2: Everyone who has money at stake, and not just YOU, could hound them to make it right. This way the weight is off your back and put on the people who actually screwed up!
3: You then just need to make whole all the folks who's order never shipped.
If as you said the supplier has everyone's funds, the supplier is the one who caused the disaster with piss poor packing, and its the supplier who recalled many of the cells due to packaging issues. Then they need to know they are on the hook.
Maybe one of the members here has contacts in China who can pay a visit to the "supplier" to get things straight?
Just a thought. My experience with you was fine, but it is obvious this all went way out of control, and you have limited time to deal with it.
I think if everyone who has had an issue can contact the supplier directly, they may feel more pressure to do the right thing.
Jus sayin.