There is no way that a defaced site should stay up. So they are right it has to go down.
As to losses the only losses I see is the usual web author that didn't backup their site. The fees are usually no problem and I can't discuss that aspect. But the brutal truth is that many learn about backup this way. Go figure when the moderators here mention it so often.
I can't help you get your site back. You have to ask them what steps it takes.
-> And let's be sure you are not logging in from some free wifi hotspot. I've lost count how many times...
Bob
Saw a thread about this, but I decided to make a new one because mine is a peculiar thing.
My site hosted by them got hacked and the frontpage defaced.
So I put in a ticket. And they called me and said they are shutting my account down because BY LAW they have to. And so I lose everything, including my hosting, which I have more than a year left.
So I didn't know any better at the time and hung up. But is this real? Like I have never heard that you lose your hosting completely because of hacking....
ANd if they are lying, is there anything I can do?? Please help :/ thanks!

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic