Received the money
I am the OP and thought I would update this thread. I received the money end of July thanks to a FT'er who mentioned about this post to Danielle from flyhub and then only they started to contact me back. Below are the details which I meant to post in July itself but forgot. This is a copy-paste of what I wrote back then.
"I finally got in touch with Danielle from Flyhub and looks like there had been some misunderstanding. I told them I would come in if need be to pick up the money since my bank accounts are online only or out of state branches. Someone read it as 'Don’t have a bank account' and triggered a fraud alert. I got my money now that things have been cleared."
One thing that comes to my mind though that I asked again for the money in cash since they again delayed the payment by a week after things were settled and I was told they don't do cash since its a business. Apparently they are fine depositing cash directly into my checking account (which I was told would be a check deposit).