Yes, the cancellation policy states you can cancel without fee before 11:59pm the next day but does not say anything about no cancellations if booked the day before the stay. If the cancellation policy actually noted this, then I absolutely would not have cancelled.

Unfortunately I did not screenshot the cancellation policy at booking, but upon trying to book another stay for tomorrow, the cancellation policy is the same.
"Changes to your reservation are not permitted. Please note that you may cancel your reservation for no charge before 11:59 PM local hotel time on October 27, 2021. After this time, please note that your prepayment for this special rate is non-refundable." No mention on this not applying due to the date of booking.