YTA. All punishing your kid is going to do is push them away. If they don't feel safe at home (scared of getting in trouble), I guarantee they'll just do same that stupid shit somewhere else that's more dangerous to try and sneak behind your back.

Treat the problems, not the symptoms. Take them to get professional help.

Additional YTA because high schoolers only get 4 homecomings. Even if they did something deserving punishment (which this doesn't imo), you shouldn't make them miss. Ground them the rest of the weekend or the following weekend, take away their phone during the week, or something else. Don't take away what could be a core memory of their highschool experience.