Ask HN: Help, I think GoDaddy has hijacked my domain

I registerred a personal domain for a 1 year period from GoDaddy on Sept 1, 2010. As the expiration is approaching (2011-09-01), I decided to renew for another year. I used my PayPal to purchase 1 yr. renewal & private registration, however due to a recent (unrelated) issue with PayPal, I had a stop-payment issued from my bank so the payment failed. My payment was reverted and consequently so was my renewal order. This is fine; I planned on using another payment method to pay for the renewal.

However, to my surprise, GoDaddy has further taken the reversal and revoked access to my domain and pointed it to standard GoDaddy landing page.

I paid for the domain from 2010-09-01 to 2011-09-2011, but my service has been cut short. Does GoDaddy have the right to take over my domain in this case?

Thanks for any input