I just found out that guests have an option to cancel a booking without penalties. Airbnb will send host a notification email giving 48 hours to accept or decline the request to cancel. If you don't respond, the cancelation will be processed. You won't get paid and guest gets a full refund. Is anyone else finds this outraging?
In addition gmail automatically puts these type of emails in trash and I haven't figured out how to stop this from happening yet. There are no push notifications on mobile app either. Very frustrating and I don't think this option should exist!
Also, I've noticed that I can't change cancelation policy to super strict on mobile. Haven't tried on desktop yet.