Horrible Hostel experience Madrid

I booked 3 nights in Rio Hostel in Madrid. I arrived 5pm for checkin, i give passport for checkin what he does. After checkin he says he moves me to other hostel 3km more far from center.

I refuse. He says he give refund. I book other hostel fast, afraid it would full. Then the reception guy, who does not speak englisch gives partial refund. I demand full refund.

He calls police. Police comes and says i must accept partial refund and leave otherwise get arrested.

I travelled many countries and stayed in 1000s hostel, never had something like this.