If you click on"cancel" after recieving "GUEST requests that you cancel" this means YOU (=the host) are the one cancelling.
What kind of people come up with this type of ploy to trick hosts?!?!? Seriously?!?!?!?!
Guest wants me to cancel -> Well, if the guest doesn't want to stay with me, sure go ahead~ -> Click "cancel".
Why would a host click "keep reservation" when receiving a "guest requests that you cancel" message?
This happened to me as well, and I contacted Airbnb help to get the blocked days unblocked - this was handled fairly quickly. In about 12hrs? if I remember correctly. But they were not able to do anything about my commitment rate. They basically told me, I clicked on "cancel" and so there is nothing they can do. I should have just declined (in my case, it was an IB booking) using "not comfortable hosting this guest as a reason. Apparently, for IB bookings, I can decline without penalty up to a certain number of times.