Emrn, I dont think an email that was sent can itself cancel a whole application, I believe, they would contact you to confirm the cacelation, or even make you sign some documents, and when they do that then you can explain to them you dont want to cancel. I think there is some kind of process that you would go through to cancel your application maybe you can look it up on the net and see how to cancel application. That way you would know if what happen can really cancel application. So I wouldnt worry so much, mistakes happen, I think just contact them and ask for an update, also check the status of your application online.
I hope all the best for you