Perhaps changing that "new" block:
Code:
                if (function_exists('zen_update_orders_history')) {
                    zen_update_orders_history((int)$_GET['order_number'], $comments, (!empty($_GET['SS-UserName']) ? zen_db_input($_GET['SS-UserName']) : 'ShipStation'), $status, $customer_notified, false);
                } else {

                    $db->Execute("update " . TABLE_ORDERS . "
    	                        set orders_status = '" . zen_db_input($status) . "', last_modified = now()
    	                        where orders_id = '" . (int) $_GET['order_number'] . "'");

                    $db->Execute("insert into " . TABLE_ORDERS_STATUS_HISTORY . "
    	                      (orders_id, orders_status_id, date_added, customer_notified, comments)
    	                      values ('" . (int) $_GET['order_number'] . "',
    	                      '" . zen_db_input($status) . "',
    	                      now(),
    	                      '" . zen_db_input($customer_notified) . "',
    	                      '" . zen_db_input($comments) . "')");
                    echo 'Status updated successfully';
                }
... so that the echo's always performed:
Code:
                if (function_exists('zen_update_orders_history')) {
                    zen_update_orders_history((int)$_GET['order_number'], $comments, (!empty($_GET['SS-UserName']) ? zen_db_input($_GET['SS-UserName']) : 'ShipStation'), $status, $customer_notified, false);
                } else {

                    $db->Execute("update " . TABLE_ORDERS . "
    	                        set orders_status = '" . zen_db_input($status) . "', last_modified = now()
    	                        where orders_id = '" . (int) $_GET['order_number'] . "'");

                    $db->Execute("insert into " . TABLE_ORDERS_STATUS_HISTORY . "
    	                      (orders_id, orders_status_id, date_added, customer_notified, comments)
    	                      values ('" . (int) $_GET['order_number'] . "',
    	                      '" . zen_db_input($status) . "',
    	                      now(),
    	                      '" . zen_db_input($customer_notified) . "',
    	                      '" . zen_db_input($comments) . "')");
//                    echo 'Status updated successfully';
                }
               echo 'Status updated successfully';