Hi guys, I would like to update this post to say that I have successfully re-gained my PS account after successfully submitting all the required documents. It took some time, with a lot of emails exchanged with Netellar and the PS Security team.
It's still not clear what the main reason is for ending their business with me since they only sent me the rules and that's it. My only guess is that the local wallet that I use for my instant withdrawal reached my deposit limit until some of them were held pending, and I kept calling them to process it immediately, but it took 2 days before they were able to release it and said that they needed to review it.
If this happens to you in the future, Just don't stop providing them with proof that your transaction is legit, especially if you are into crypto trading, and make sure to keep all your documents and screenshots saved in one folder or cloud so you can back up all the money that keeps coming in and out of your account and use it as ammunition to fire back to retrieve your frozen money.