Host says they are no longer associated with AirBNB, but the reservation is still active?

I have a trip in less than a week that I had booked through AirBNB. I had booked early because the location is popular at this time of year, and I wanted to get something within my price range.

I got a message this morning from the host that he cannot make room for me, because he is no longer working with AirBNB. The reservation for AirBNB is still active and has not been canceled yet. He says he might have a solution, but I believe it would be outside the AirBNB system. Is this a common scam?

I checked the prices for the rooms in the area for when I am coming, and the cheapest place that works is 4x the cost that I paid for this one. Even if he cancels my reservation, there is no way that I could afford a new place at those prices. The cancellation policy is "Flexible". Am I screwed, or will AirBNB be able to help if I call them?

EDIT: I called up customer support. After a few hours they called me back and offered a compromise that gave me a nicer place to stay at a very steep discount (if I paid a little bit more). I don't have any complaints anymore. Go team.