I implemented in-app billing into my app and am now testing its handling of refunds.
I bought my app\'s managed in-app billing item with a test account and refunded it.
I was seeing the same issue. GP crash and everything.
In addition to waiting a few hours, you may want to open up 'Google Play' app info and clear cache and clear data. This solved it for me. It appears GP caches purchase information on the device and only checks Google's servers rarely, if ever, for refund information.
Update: You may also want to kill the Google Play process since it appears to keep purchase info in memory too.