About walking and that manager...

First off, hotel managers aren't some top-tier service people with tons or experience or education in all matters of hospitality. They're no more demending of your respect and a free pass if they're no good at their job then a McD's manager.

Walking become common at places that double sell their inventory via opaque websites like priceline and hotwire. They get screwed if they walk a priceline or hotwire reservation and so people who pay 3x as much get walked instead.

Walking is not uncommon, in fact many places consider a reservation just a guanrantee for a room somewhere, not even neccessarily with them, but you should always be walked up - never down, refuse a downgrade and pitch a fit.

They do owe you, and better make good on it. Contact everyone associated with the company until you get what is owed to you.