Obviously they are trying to protect themselves by waiting to refund your money until FedEx pays them back for losing the shipment. It doesn't sound like it's their fault at all, from what you have described. It's just normal business practices.
Think about it. If/when FedEx pays Dynasty for the lost shipment, then FedEx is taking the blame. And you're on here bashing Dynasty. You, sir, should be flogged.
Note - I'm in no way affiliated with Dynasty Auto or FedEx.
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I would also like to add that once I bought something off of eBay, was given a UPS tracking number, and the number wouldn't work on the UPS site. The shipment was Ground, so I waited several days and the package was delivered. So, just because you don't get a working tracking number, doesn't mean that the package was never shipped.