Student dorm rented on Airbnb, police show up!

I rented an apartment with a friend in Washington that turned out to be a student dorm. However, we do not realize it. We paid the host’s friend the deposit and we went to buy some groceries. Basically when we came back police were there at the dorm because the neighbors showed movement in the apartment. This host had not paid rent for 4 months the monthly fee so the police took our data and we ended up sleeping in the street that night because we could not afford to pay 300$ for a night of hotel plus Airbnb did not give us anything until the next day. They did not believe our story and they gave us the money back in form of another apartment but no compensation. Awful