@Lorie7
set your " base price" according to your average or your top price whether you use smart pricing or not, just to be sure in case another glitch happens in the future.
Call Airbnb to cancel this reservation without any penalties for you because it is not your fault.
A similar thing happened last year, I think due to the storm or wildfire, I don't remember anymore, when Airbnb canceled reservations far away from the affected area. They are not very precise as you also noticed.