All that you have experienced is system driven. You need intervention with Air BNB if you wish to cancel a reservation. Never do it on your own. System will apply all penalties as it does not differentiate acceptable host cancellations. Best to speak with a representative rather than send a message via email.
Here is a guide for contacting Air BNB
https://community.withairbnb.com/t5/Help/Contact-Airbnb-A-Community-Help-Guide/m-p/16165#M728
Also, you might want to ensure your IB requirements include a government ID and a positive review.