Did you try pressing the buttons on the side top bottom top
The same thing happened to me (digital display and hands "frozen" or stopped at same time). This "All Reset" procedure fixed it per the Citizen Manual. (Note: This erases any stored data as indicated in the manual.)
1. Pull out the crown (you may need to unscrew it if your watch is the screw-down model, like mine.)
2. Press and hold all 3 buttons simultaneously.
3. The digital display may go blank, and then look like gibberish. That's ok.
4. Push in the crown.
5. The watch alarm should beep twice.
6. Pull the crown back out, and set the time (analog hands).
7. Push in the crown. (Screw it back down if you have the screw-down model.)
8. Set the time on the digital display using the appropriate side-buttons.
Here is a link to the Citizen watch manual for this watch. See page 19 for this procedure.
http://www.citizenwatch.com/Technical/English/Full/C506_ebook.pdf
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