I paid for a money order from my bank thirty months ago, and cashed it back in at the same bank just last month. Now they put a stop payment on it and took the funds out of my checking account. How can the bank do this? I already gave them the money when I got the money order. Same bank, same money order.
It appears that the bank put a stop on the money order before you negotiated it. The bank probably was trying to clean up loose ends with money orders that had been outstanding more than two years, to prepare for transferring those funds to the state under abandoned property laws.
This looks like a fairly simple internal communication breakdown. Contact the bank, explain the situation, and you should be able to get your funds back quickly.
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It appears that the bank put a stop on the money order before you negotiated it. The bank probably was trying to clean up loose ends with money orders that had been outstanding more than two years, to prepare for transferring those funds to the state under abandoned property laws.