@Adriana413 you are correct in that you should not cancel.
It is not your fault that the host did not update their pricing, and it is their responsibility to deal with it.
The hosts options are:
- Host you at the agreed-upon price.
- Cancel your booking, but then have a blocked calendar so they cannot host an Airbnb guest during the cancelled days.
- Get you to agree to pay twice as much.
- Somehow convince you to do a guest cancellation. (This gives him a free calendar to rent out at twice as much.)
The host already tried #3. Now he at least wants #4 to happen.
You can contact Airbnb and explain what is going on. They may be able to try to place you in an alternative listing (if they can find one at an acceptable price).
If there are no acceptable alternatives for you, that leaves you with option #1 or #2.
You do have the right to use your reservation at the original price (even though you are right to worry about feeling welcomed).
So don't cancel. First see if Airbnb support can find you an acceptable alternative.