@Jeremy183 sorry this has happened.
I have no explanation as to why he mentioned two different nightly rates ($295 and $1000).
Maybe he meant the *total* for those nights would be $1000?
Often we criticize hosts who lure guests in with low rates, and then try to jack up the price.
This sounds a little bit more like they did just make a mistake. If this was one of those "lure and jack" hosts, they will usually lead off by offering you a reservation change with the higher price. It doesn't sound like the host did that.
That being said, it is the host's responsibility to keep their pricing calendar up to date. It is entirely their fault that you had to waste your time. (Hopefully you are not out any money....)
At least he cancelled quickly so you can seek other places to stay.
The worst hosts are the ones who cancel just before your trip, when there is no time to find a good place, or all the decent places are already taken.
You do have the right to be upset, and disappointed, though.