Earlier quoted context omitted.
In fairness I haven't read the contract between this host and airbnb...but very unlikely is anyone "entitled" to any funds legally. Rather, airbnb likely has a provision for a claims process to evaluate these types of incidents, make determinations and if applicable make an offer to settle the claim. But the host is not unilaterally entitled to any funds. Now if the host is unsatisfied with the terms of the settlemen…
Is there room for such a term as "strongarm tactics" in your lexicon? And how do we feel about the gross imbalance in power between AirBnB and an individual?
Yes there are terms for "strong arming" that would invalidate contracts or even this settlement: "coercion". Now think more along the lines of the GodFather making an offer he can't refuse (gun to your head asking you to sign) or I'm locking you in the room until you agree verse an offer with 24 hour deadline to accept with a confidentiality provision.