@Lucy84, I'm sorry this happened. What rotten luck.
Since you rent out an entire house, I'd crank up your security deposit to $500 or so.
I'd also contact the neighbors surrounding that house and explain that this group misrepresented their intent and you'll be watching future bookings closely. Angry neighbors could be a real problem if they start to complain to the city.
You might also give your neighbors your cell phone number in case this happens again so they can contact you directly. That way you can show up at the house in person and put a stop to any disturbances.
Good luck, and hoping the new year brings fewer incidents like this.
Carl and Diane