milos I understand the problems the hold created for your business and the awful timing. There are certain processes that Upwork is obligated to follow for legal reasons, that do include a time limit for receiving a response, the majority of users are unaware of and never encounter. While I don't have insight into the case specifics, this sounds like those sort of one-off verification requests triggered by your most recent withdrawal. This is why it's super important to have access to Upwork email notifications, especially when initiating financial transactions or more impacting account updates.
Your best course of action is to provide the available documents regarding your business entity, even if they don't fully match the requested documents, and communicate as clearly as possibly. There's really nothing much you can do about the emotional impact this action has caused you. Just focus on completing the verification process and getting your account access and funds as the first step. Since Upwork can't reopen closed contracts, make sure to communicate with your active clients immediately and once you get access to Messages. Once the hold is lifted, ask your clients to rehire you, in order to speed up the process. You can share this Help article with them.
That's the best way to mitigate the damage the hold has done to your business. Note that this might take from a few working days to a week/10 days to get fully resolved, provided the submitted documents are sufficient.
Please keep us updated and try to stress the least as possible.