When I create an issue and put the issue in a status (say for example: on Hold) and when the reporter or any watcher of that issue comments how do i change the status back to inprogress.
I think you need an "Auto transition listener". Try the one in the JIRA Toolkit addon - it was written for the cases where "user comments on closed issue instead of reopening it", but it more flexible than that.
in the ticket itself they should be buttons letting you do this. If they are not available then you will have to modify the workflow to at this step in there.
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