Шарашкина контора Sharashkin's office

We booked a double room with amenities on Booking 1.5 months before the trip (2 nights on Independence Day, from 23.08 to 25.08), paid, called the hostel several times to confirm receipt of money and reservation (including 3 days before arrival). Administrator Olga Nikolaevna confirmed that everything was fine. Our train arrived at 5 am, we immediately went to the hostel to leave our things, we planned to check in after arriving from the excursion, which we also booked in advance. At 6 in the morning we were at the hostel, the same Olga Nikolaevna once again confirmed that we would be able to check in after 14.00. We left our things, and when we returned to the hostel at 22.00 there was already another administrator, who said that there were no places and that they would return our money to us, and if they wished, they could put us in a hostel. According to him, Booking is to blame for everything, which sold more rooms than is available, but here the question arises: when booking, the hostel sees the payment and confirms it. How did they confirm the reservation of rooms if they understood that they were not actually there?
In general, the impression of communication with the hostel staff is terrible. I would call this institution a “sharashka office”, which is absolutely irresponsible towards its customers, the employees are incompetent and shift the blame on each other. I don't recommend anyone to deal with them.