The hotel reservation problem actually happened to me. I booked the hotel via a company called AMOMA, which Google recommended me when I entered the hotel name (it was the cheapest so I took it).

They recently sent me an email saying that they immediately ceased service and our booking will probably be cancelled. I checked with the hotel the same day and got a confirmation that the booking is all good (via phone and email). One day after I get an email from the hotel saying our booking has been canceled.

I did pay via (prepaid) credit card so it'll be interesting to see whether I'll ever get my money back...