I am having a similar situation as a host. Yesterday, I got a message that my studio is booked automatically for 9 days in April. I went to check booking details and was surprised by a very low price $395.00 for 9 nights. That's about $44 per night. I am a host of a place in nice convenient location Boston, MA for about 7 years. Most of those years as a Super host. My lowest nightly rate was about $70.00 and that was 7 years ago. My current base price was $119/night. I had Smart Pricing option - ON. Because of that rates some time fluctuate, but they never go lower than my Base Price of $119. April is very desirable month because of Boston Marathon and hear I am getting such a ridiculously low price for the hottest week in April. I checked everything trying to figure out where $44.00/night rate is coming from, but with no success. So I called Airbnb support. The lady I talked to had me on hold 5 times trying to solve that puzzle. Finally she announced to me that because of Smart Pricing ON, prices can go up or down based on the rental market condition and that rate ($44) was dictated by market in my Area. She sent me an link to an Airbnb article "Adjusting your settings to meet local demand" to read and funny enough that article stated: "If you use Smart Pricing, make sure to set a minimum price so your rate never falls below a number you’re comfortable with."
Anyway she kept repeating her "Market condition and Smart Pricing " line. I turned Smart Pricing off and changed the price to $129 for every day in April. I also made it clear that she need to cancel that reservation because the booking for $44 is not acceptable. Finally she said that she will cancel that reservation as a One Time Courtesy. So, she cancelled it and I asked her to escalate this issue as I need to understand why it happened and how to prevent it from happening in the future. She promised me to do it. That was on 1/18/22. Next morning on 1/19/22 I got a message from that $44/night guest asking me why it was cancelled. Few minutes later she sent me another message saying "never mind, I was able to book again" And what do you think? It was booked again for that low price $44. I called Airbnb Support again and talked to a different person she promised to get to the core of it, called me back 3 time, but still didn't know why it happened. Told me will call back tomorrow. Half a day passed she still did not call me. This is a bad situation.