Just had to cancel a booking due to someone being able to book over Christmas which had been blocked over the festivities.
I was due to be assesed for superhost after a very long wait without, and was anxious not to lose this. You're automatically declined if you cancel.
Airbnb were quick to respond and waived the panalties however this keeps happening and they should sort out this very serious glitch.
I find myself having to continuously check my calendar as its not nice to let people down, explaining why, contacting airbnb and waiting for a resonse etc.