@Yan1 Looking at it objectively, the guest's review appears to be fair and relevant, so as @Helen3 said it would not meet the criteria for removal.
Filing a false police report is a crime, and it seems like a bizarre thing to do to get out of a cancellation penalty. And I don't see how the fact that no robberies occurred in the past would prove that one didn't happen that time. Which is all to say, his story and review sound credible enough that he doesn't stand out as some kind of con artist.
The review contains both positive and negative feedback, nothing extreme enough to doom your listing. But your Host Response will be off-putting to prospective guests, because it sounds more like you're trying to pick a fight with the guest than address the critical feedback. When you say "You need to adjust your expectations, this is not a 5 star hotel," it comes off as though you have no interest in making any improvements to the space and that guests paying a budget rate deserve a low quality experience. I don't think this is an accurate reflection of your real hosting style, considering that you went to all the trouble of bringing your guest a brand new bed. So it's important that you remember - the audience for the Host Response is your future guests, and it will largely define how they perceive you. Seeing "I wish I never accepted S----'s booking!" might scare away the good ones!
If it's still possible, I recommend revising your public response from a calmer perspective. Don't mention the pricing (it's not relevant to the review) and address the police incident with some assurance that you've taken measures to improve the home security. You can say that the space wasn't the right fit for the guest's expectations without lobbing insults at them.
