@Andreas-Ursin0 the situation you describe happens a lot; you are far from the only host to be caught by this.
While hosts understand there are
- Guest cancellations, which are blamed on the guest, and
- Host cancellations, which are blamed on the host.
hosts often do not understand there is also:
3. Guest requesting a host cancellation, which is blamed on the *host*.
Regardless of how much "agreement" there is between the host and guest, if the host is blamed for the cancellation, then the host cancellation penalties are applied.
I assume now you know that if the guest wants to cancel, that the guest must cancel.
On the other hand, if indeed you (the host) were the one who actually wanted the reservation cancelled, then the penalty is supposed to be applied to you, regardless of how must the guest "agreed" with your reasons for cancelling.
The test: if you had not wanted the reservation cancelled, would the guest have pressed for a cancellation even against your wishes?
It is NOT explained very well, which is why a lot of hosts get stuck in the same situation you are.