The host was triggered into a racist tirade after being informed the renter was bringing 2 extra people and 2 extra dogs. The guest informed her hosts while on route in a snowstorm. It's well within the hosts rights to declare the contractual reservation null and void at this point.
The host screwed up and injected race into the equation, and that is why she is being punished.
This law student seems like a complete entitled idiot that had her reservation cancelled because she tried to impose her own rules on the airbnb owner.
As a law student, she knew how to milk public sympathy and the law system to her benefit. I doubt this will be the last time we hear of this woman.
It doesn't excuse the racist comments, but let's be honest about the situation. She was not denied the rental because the host is a racist. The host was very happy to take her money. Whatever prejudices the host had she ignored and rented out the property until the guest decided she was going to turn the property (I'm assuming) into a giant weekend party