The whole purpose of a chargeback is for the consumer to avoid the inevitable fight between third-parties. If the dispute has merit, the consumer receives a credit and that amount is debited to the merchant vendor paid by the merchant acquiring bank. The merchant vendor and third parties can then slug it our or not as they wish. But, that is of no concern to either the consumer or the consumer's issuer (bank).
In simpler terms, if you book through Expedia and the property is closed or otherwise unable to or does not provide the service AND you are refused a refund, you initiate the chargeback. Whether it is Expedia or the property which ultimately gets stuck is not your concern. Nor do consumers or their card issuers want it to be.
Expedia, of course,has greater market power than a consumer. If you never go back to a given property, it is not even a blip. But, Expedia can simply withold amounts due from the next booking and few properties can afford to discontinue the relationship if they want new customers from distant locations.