@Lynnette28
You shoukd have shortened the reservation ("change" option) , then the refund is done instantly and remaining calender dates are made free. Then Airbnb does not need to be involved.
Was the reservation cancelled and by who ?
Not clear to me why Airbnb is also performing a refund, while the CS rep told you to do it manually .
You need to contact Airbnb about this issue.
Contact Airbnb - Community Guide [Updated]