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Award stay becomes $$$ stay ?

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A few days ago I booked 3 award nights at an IC property. But travel plan changed, I modified it into 2 nights online using "Modify Reservation" button. Today when I logged in, I see all my points got redeposited, and my reservation is now cost $$$ (but at a significantly lowered rate). I don't mind paying that rate.

It has a "Modified" status. And according to the online chat with a rep, it's been modified by the hotel.
Anybody ran into this situation before? Is my reservation safe?
Can the hotel come back and modify my "confirmed" reservation to the correct rate or even refuse the reservation when checking in?

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