Had a domestic flight cancelled during the second day of the ash and it took 24 hours from the flight being cancelled until MMB recognised the cancellation and the appropriate options appeared. Saying that, MMB still wouldn't process the cancellation but I assumed that was because it was a Hotline booking.
Not sure if there has to be some human/manual intervention when a flight is cancelled prior to the MMB cancellation options appearing. Maybe one of my ground staff colleagues can answer this one...