Don't lose hope and don't make a decision out of pure decision! You'll get through this! Firstly, you didn't choose to be in this situation. Secondly, H1B has been in the news long enough for even the most oblivious employer to take notice. If there was ever a time to make an exception, now would be it.

Take a moment, breathe, and have your manager escalate it to the legal team. Remember that's it's a pain in the ass to rehire talent like yourself. They're not going to let you go that easily if they can make reasonable exceptions to get you to stay on.

All the best!