Client submits to Upwork Arbitration, am I charged $291?

Question

Upwork

Just like the best misfit stories. I wanted to work fast. I took on a small project to develop a logo.
Bottom line:
Served the client 5 logo concepts (together the usual three), She liked two options. But the client still has a client to whom he showed this and he did not like the concepts. And it turned out that they needed a logo in a short time, which my client did not indicate to me initially.
As I understand it, my client gave the TK how she imagined this logo. I did everything based on references. But the third party saw the result COMPLETELY differently.
As a result, my client closes the project and requests a refund of the reserved first payment (the payment was split into $60).
I filed a dispute, as I spent time on work. I specifically break down and prescribe the purpose of the payment. And the first payment was assigned precisely for the development of concepts.
For four days we talked with the administration, each in his own way. And so we came to the conclusion that UpWork offered to pay me for Milestone1, and disperse. But the client is stubborn, she said to file for arbitration.
And now, because of the $60 that she fundamentally does not want to pay me, we will have to pay $291 for participation in the American Arbitration Association !!!

Initially, the cost was $170, and the client tearfully asked for a discount. I wanted to earn some money quickly, and I agreed to 120 ahahaha, in the end I will still get paid for arbitration ???

And I have heard that arbitration is always on the side of the client. Who has experienced this? Is there really a chance that arbitration will take the side of the client and eventually I will be charged for participating in arbitration?

Today's updates:
UpWork gave us a choice, the first option - the client pays me for the work and we scatter, the second option - if at least one party does not agree, UpWork is submitted to arbitration, where each of the parties for participation is $ 291
Here is part of the message from Upwork:

"Since some work was submitted by the freelancer towards the work for Milestone 1, it is suggested that a partial payment can be released to the freelancer for the work done on the project.

We ask that both parties respond within 5 calendar days starting from today, with their acceptance of the resolution, an alternative proposal, or confirmation that they wish to proceed to arbitration. If either party chooses arbitration we will arrange payment of each party's portion of the non-refundable arbitration fee of $291. We look forward to your replies."

I chose the first solution, the client said that she wants to get $60 back, so she is FOR arbitration.

Today I have a notification
"Some of you may be experiencing errors on "Getting Paid". We are aware of the problem and are actively working on a resolution. Your patience is appreciated."
It turns out at the time of the showdown, I also can’t withdraw money? This is generally crazy.

Answer 1

Firstly, the American Arbitration Association is not a representative of the law, it is simply an organization helping to settle pre-trial proceedings. Secondly, you should take an interest in UpWork support, where their rules fix the possibility of additional parties interfering with arbitration. Finally, you can inform the client that you do not work in the US jurisdiction, and therefore they can attract arbitration only for proceedings with UpWork.

Answer 2

Thank you all for your support) The issue is almost resolved. The client was really bluffing. And when UpWork wrote down the deadlines, a warning about freezing the account if one of the parties pays and the other does not. Etc.
In general, they listed all the charms and said once again the amount of the payment (apparently she didn’t read it well last time, maybe she thought that I was 291? ahhaah).
I wrote that in this case I was ready to pay for the work at this stage and complete the discussion.

Answer 3

And I have heard that arbitration is always on the side of the client.

It is not true.

And now because of the $60 she fundamentally doesn't want to pay me

What country is this bastard from?