Today, I received 3 orders. For the listing that I edited using the new listing tool, I had set two prices: one for India and one for everywhere else. The orders I received were from "everywhere else," not from India, but the listings sold at the Indian price. The listings that I edited using the old tool didn't have any issues. Why did this happen? This bug still hasn't been fixed
No, it hasn't. Yet the old listing form, which I use because it doesn't have this bug, will be retired in June nevertheless. Etsy can't seem to get anything right.
It's a new form bug that's been going on since last year.
Speak to Etsy to see if they will give you a credit for the money lost. You shouldn't have to foot the bill for additional money lost because of Etsy's incompetency. They're refunded other sellers before. See the thread below, so don't let them tell you that they can't or won't.
Use the old listing form to the very end.
Now what should I do? Should I cancel the orders I have received, or what?
That's for you to decide. You have to speak to Etsy about it and you have to decide if you want to fulfill or cancel depending on what they say.
In the US your prices appear really low and include free shipping.