Booking.com confirm a booking before the hotel confirm.

Made a booking with payment and received a confirmation. Tomorrow I received a message to keep my booking by making a payment or cancel. I kept my booking and send a message that I paid. Then I received a message that the hotel is full. I must cancel to get my refund and Teri promised he will see to it I get it by the morning. After I cancelled - received a message that I will get my refund in 7 - 12 days. Teri now says he/she has no control over the refund. Booking was for the coming weekend. It means I don't have money to make other booking/arrangement for the next 7 - 12 days.