First thought on reading that the "host" offered another place. I've read about this scam numerous times, and you are absolutely correct to refuse it, as the likely target would be a near-uninhabitable insect-infested hole, but without the option to cancel because you just "rebooked" within 24 hrs, after the refund time.

I once arrived in SV and we got to our AirBNB after midnight to find that the listing was nothing like what was described - it was literally 3 different bunks in different random rooms when we'd booked several rooms in a shared house. AirBNB did give us credit worth about half the cheapest single hotel room we could find, but only after arguing for an hour.

I'd previously had good experiences with AirBNB, but it seems seriously overrun with scammers at this point, and the executives just clearly don't get it, especially at the level of PG's "solve intense immediate pain for a small number of people". There's enough of it out there to generate a lot of bad publicity and it just goes ignored. Maybe they'll pay attention with their stock near a 5-year low and under half their 52week high, but I'd sooner short it than buy it.