I have contacted support and they said the Bitcoins took too long to confirm. And as such would refund me, which is unacceptable because they have my coins and i want Litecoins (which have increased in price since).
If this is unacceptable to you, you should have used a higher fee for a faster confirmation, or used their "Specific Amount" feature (I never tried it, but it's mentioned in their terms).
I wouldn't call this a scam, it's according to Shapeshift's Terms and Conditions
... your payment is typically considered “accepted” at one block confirmation.
Users who are sensitive to the exchange rate they receive should use ShapeShift’s “Specific Amount” feature, which guarantees an exchange rate for a specified period of time.
They even told you they'll refund you. Just make sure they have your return address.
On top of that, they have not replied to any of my emails/tickets in the last 3 days.
It's Easter weekend. I don't know if they normally have weekend staff working, but they might be off now.