Hello @Robert1203
This sounds awful, but why didn't you or your co-host go down to the listing when your neighbours first flagged this to you and ask Airbnb to cancel the booking, when you heard from neighbours they were breaking your house rules and disturbing your neighbours, rather than let them carry on partying?
If you are going to list remotely, vet your guests, make sure you get them to acknowledge in writing that they aren't to have more guests than have booked at the premises, have CCTV so you monitor who is on the premises.
In terms of the current guests, you need to take photo/video evidence, put in a claim for the damages and leave these guests an honest review 1-2 stars for communications and cleanliness and thumbs down so they can't IB with other hosts .
I would also apologise to your neighbours and let them know what measures you are putting in place to minimise this happening again.