Absurdly Low Refund

Flew to Europe and back a couple weeks ago. Ticket cost $950. On my way back to the US, the final leg of my trip home from ORD was cancelled. I decided not to rebook for the next flight as there was a high likelihood it would be cancelled as well, I had figured out a way home(400mi), and just wanted a refund for my flight.

Customer service was always easy and good to talk to, however no one could give me an answer on how much I would be refunded, just kept saying that they'd submit a request and wait for an email.

Well I reached out again today after not hearing anything for a couple weeks, and was told my refund would be $35 and that's it... Can that be correct? One way flights to my home airport are $2-400, but they're saying the base rate for this flight is $28.

If I had been told I'd only get $35, I may have considered the hotel room, meals, and rebooked flight instead.

How are refunds/compensation determined? I've received $200 of travel vouchers for much shorter delays(not even cancellations) in the past.

Anyone have insight on how compensation or refunds are determined? What are the proper ways to bring up this discrepancy that I don't feel is correct?