If there is anything truly wrong about his application details [1], they shouldn't publish that on the open web but deal with it privately. If he publishes his application details that's fine, but if they do they might be liable.
Their real mistakes are: 1) hanging onto his cash and dicking him around because they can't afford to give good support to all 11 million users who depend on their site for income and 2) having such an opaque process that it takes posts to HN to sort his issue out. By comparison, refusing to post his (supposed) application errors when doing so would absolve them doesn't exactly look like a smoking gun.
[1] https://news.ycombinator.com/item?id=7657942 hints that there might be more to the story. If the support person screwed up, just accept the ID and send him his money. Instead they reversed the transaction, are 'investigating the project further' and are being cagey about details. Assuming they're not idiots, why would they not post the specifics?
More information here[1]. It's interesting that they're giving out so many details now. They indignantly state, "We don't subvert [anti-fraud] processes because a post makes its way to Reddit or HN", yet they apparently don't mind blaming both customers and publicly providing more details about their transactions, when it becomes clear Reddit/HN anger is going to hurt their bottom line.
It seems to boil down to OP possibly oversimplifying in his understandable frustration, and essentially his word against theirs (they say there's a "good reason" his documents were rejected, he says all communication was contradictory and unresponsive, with no reason given for his documents being rejected.) If the communications OP quoted are legitimate, Freelancer deserves the outrage, no matter the exact reason OP couldn't get verified.
Their real mistakes are: 1) hanging onto his cash and dicking him around because they can't afford to give good support to all 11 million users who depend on their site for income and 2) having such an opaque process that it takes posts to HN to sort his issue out. By comparison, refusing to post his (supposed) application errors when doing so would absolve them doesn't exactly look like a smoking gun.
[1] https://news.ycombinator.com/item?id=7657942 hints that there might be more to the story. If the support person screwed up, just accept the ID and send him his money. Instead they reversed the transaction, are 'investigating the project further' and are being cagey about details. Assuming they're not idiots, why would they not post the specifics?